commentary on april update

Cooper are producing at 650 bopd, for about 13 grand a day.

Like Stuart, this is a lower rate than I expected, with Worrior contributing less than it should.

Having Chrisites shut in due to flooding hasnt helped either. Christies should be worth at least another 100 bopd once the roads are passable.

Now, they've committed to a series of stepout wells (Worrior 2, Christies 2+3, Sellicks 2) for a total of roughly $1.8 million. Now, at their 13 grand a day from the Cooper, this means that this work can be done out of cash flow, leaving their cash pile intact.

Note that these are all stepout wells. The story of the four exploration wells gets more interesting.

Acracia Grove looks a day or two from the Patchawarra and Tinchoo, so stand by for DSTs.

Firstly, Cooper are listing two PEL 92 wells in August, and a PEL93 in December.

93 is the Worrior PEL, that they have JV'd with Stuart. Stuart havent mentioned a 93 well in their 2004 exploration program.

92 is the location of Sellicks and Christies. Beach have verified 2 wells there, to be nominated later based on seismic results ... I hope they can find worthwhile targets.

Note thatn Cooper have fufilled their JV commitments, so they are now paying in at 1:1 for their wells.

I'd be expecting three of the four stepout wells to be worthwhile, and for it to increase Cooper's oil production by at least 50%, to around 1000 bopd.

If they can get a hit from one of their other wells (and I dont particularily like where any of them are located), then they might even have the cash flow to support playing outsdie the Cooper ...

Ian Whitchurch