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From the Sydney Morning Herald


Cooper Energy shares surge on oil news

December 3, 2007 - 11:39AM


Cooper Energy Ltd shares surged almost 80 per cent higher after the company said it had discovered oil in Indonesia and confirmed the Parsons field in South Australia was economic.

The oil producer said that "oil shows" had been recorded at the Kurnia-1 well on the island of Madura in Indonesia.

Cooper Energy is targeting 200 million barrel's of oil at Kurnia-1, but the recoverable amount of crude and flow rates are unknown at this stage.

The company is planning to undertake a production test on a section of the well this week.

Cooper Energy shares surged 57.5 cents or 79 per cent to $1.295 before pulling back to close 43.5 cents higher at $1.155 amid hefty turnover of almost 20 million shares.

Meanwhile, Cooper Energy said an assessment of the Parsons discovery in the Cooper basin in South Australia had indicated good flow rates from the well.

"The log evaluation shows that there is approximately 10 metres of good quality net reservoir and the clean-up production rate of 3,362 barrels per day again demonstrates the high productivity of the Namur Sandstone Formation," Cooper Energy managing director Michael Scott said.

Cooper Energy said commercial oil production from Parsons is expected to start by the end of March 2008.

The company said it was poised to increase its recoverable oil from the Cooper Basin by 400,000 barrels and boost production by over 800 barrels per day when Parsons starts up.

Parsons, which is a joint venture with Beach Petroleum Ltd, is located nine kilometres west from the Christies and Callawonga oil fields.

Beach Petroleum is the operator and major stakeholder in Parsons, Christies and Callawonga with a 75 per cent stake.

Cooper Energy holds the balance.

"Of additional importance, this new discovery has also extended the Cooper Basin oil play fairway further to the west and there are a number of structures that are adjacent to and outboard from Parsons," Mr Scott said.

"These will be evaluated for potential exploration drilling in 2008."