Release: Cooper Energy: Kurnia-1 update

(December 06, 2007)--Further to release COE041207a (Kurnia-1 Update), Cooper Energy provides the following update:

Kurnia-1 (South Madura PSC, Indonesia, COE 30%, Capped Free Carry)
? The rig has drilled the 8 1/2? hole from 3,036 metres to 3,050 metres. There is now 46 metres of formation open between the casing shoe at 3,004 metres and 3,050 metres.
? Oil and gas shows of varying strength have persisted in the mud and cuttings whilst drilling.
? The mud weight has been stabilised at 16.4 ppg (pounds per gallon). This would indicate a high formation pressure of 8525 psig (pounds per square inch gauge).
? Engineering risk calculations and evaluations, and discussions between the rig contractor and the Joint Venture Partners, have indicated that the formation pressure is too high to safely test the well in the 9 5/8? casing. As safety of our personnel and equipment over-rides any other consideration, a production test in the 9 5/8? casing will not be executed. A production test may be carried out later, subject to further formation evaluation that is detailed below.

The forward plan for the well is to:
? Run wire-line logs in order to determine the type of fluids (gas or oil) that may exist in the carbonate formation between 3,004 and 3,035 metres. The logs will commence running today and the results are expected to be available over the weekend.
? After logging, drill ahead towards total depth (3,400 metres) in order to evaluate the remainder of the Kujung carbonate formation.

If the logs or shows in the deeper section confirm that the formation has potential:
? Run and cement a 7? casing. The 7? casing is stronger than the 9 5/8? casing, which will enable a safe production test.
? Run a production test to determine if the formations are productive. (end of release)