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sharesmag Cooper Energy

Since listing on the ASX in 2002, Cooper Energy has been a model of consistency. The $40-million company had cash reserves of $22 million in June 2005 and recorded an unaudited net profit of more than $13 million for 2004-05. This equates to earnings per share of about 9¢, making Cooper's share price of 30¢ look very enticing.

In 2004-05 Cooper's year on year production more than trebled to 368,000 barrrels, indication that its growth is underpinned more by the company's production profile and the oil price. Adding further spice to Cooper's outlook is its diversification into the highly prospective Bargau Block area of the Mediterranean sea.

Management has demonstrated that it can operate in a cost effective manner and bring new wells on stream quickly. Cooper has an aggressive exploration programme in place for 2005-06 and if it can bolster reserves, the company is likely to attract investors who are looking for an emerging small-cap producer. The company's balance sheet has the capacity to fund growth via acquisitions or farm-in agreements.