poland & pola according to john campbell o & g

The following extract, regarding the COE Polish investment, is from this weeks O & G Weekly giving John Campbell's opinion "It looks a good deal to us"

"Cooper Energy has teamed up with leading German explorer and producer RWE Dea to secure a 40% working interest in six contiguous exploration concessions in the prolific Carpathian fold belt in southern Poland owned by REA and covered by three MUAs.

In addition to the leases exploration potential they contain the Pola oil field Rea discovered in 2007 with the Pola #1 well. Follow up wells Pola #2 and Pola #3 discovered oil in the same low permeability Ciezkowice and Krosno sandstone reservoirs as Pola #1.

The JV will see if modern completion techniques can unlock the 7.8 million barrels of oil assessed as the contingent field resource.

Cooper will participate in an immediate production test of Pola #3 well and a hydraulic fracture production test on the Pola #2 well. Cooper will retain the option to participate in the full development of the Pola field.

If it opts not to it will retain its interest in the exploration potential of areas beyond Pola.

Other opportunities include shallow oil targets as well as deep sub thrust gas lead.

Cooper will pay $10 million to enter the deal plus $2 million for the initial years‟ exploration expenditure.

Transfer of the 40% interest in the licences to Cooper is dependent on Polish government approval.

It looks a good deal to us.

Great partner in one of Europe‟s leading energy companies and a good address with well established oil and gas infrastructure and two local refineries within trucking distance."

In addition to Poland, there is the imminent spud of the 100% owned onshore Tunisia Menzel Horr #1 prospect targeting 24MMBO gross P50 recoverable oil, recommencement of drilling in the Cooper Basin, the recently announced alliance with Zeta Petroleum in Romania which owns the Bobucu Gas field, the Indonesian assets - including Sukananti production.

Euroz reports "COE is very cheap based on forecast cash flow multiples (ex-cash) - our forecast FY11 operating cash flow is $22m which almost matches the current
EV"

and

"Few companies have the leverage to upcoming exploration wells that COE does. In the success case, >$1.50/sh of additional value can be added from Menzel Horr-1 in the Dec Q".

It's worth checking out the report at:

http://www.cooperenergy.com.au/cooper-pdf/Broker%20Report%20Euroz%20Resources%20Quarterly%20September%202010.pdf