quarterly report, page-32

To change the topic slightly, is everyone aware that Cooper Energy (ASX:COE) holds interests in some offshore acreage in Tuscany. It is not directly adjacent to KEY's Italian Elba South acreage offshore southern Italy but is somewhat close by. COE's Tuscan acreage is approximately 50km (a little hard to measure with COE/KEY maps) to the north west of Key's Elba South Blocks, which are on the Italian side of the Mediterranean sea boarder between Italy and Tuscany.

From COE Quarterly 31/3/08

Tunisia

-The Bargou License (COE 100%) is in the
process of being converted from a Seismic
Prospecting Permit to an Exploration
Permit. The Tunisian Government has
approved the conversion and all
documentation is complete. The signing
ceremony followed by publication in the
official Government Gazette will enable the
5 year Exploration Period to commence.

-The farm-in to the Hammamet License
(COE 35%) is awaiting the formal approval
of the Tunisian Government. Cooper
Energy has been informed that in-principal
approval has been granted and the final
documentation is in preparation. The
Operator is currently interpreting the 2007
seismic and we expect to have a drilling

-location proposed around mid-2008. Rig
schedules are tight but it appears that
several rigs will be available sometime in
2009. Cooper Energy is working with the
Operator to drill a well as soon as possible
on the permit.

COE's comment on rig availability may be relevant to Elba South.

Marxist