SOMERTON ENERGY LTD 
By for the Quarter Ended 30 September 2012
Highlights
? Oil production of 104,056 barrels: constrained by transport capacity and expected to increase to over 1,500 barrels/day (Cooper share) when the new Lycium to Moomba pipeline commences operation in December 2012
Quarter.
? Production guidance of 550,000 barrels maintained: and could be increased due to recent exploration success and earlier start up timing for the Lycium to Moomba oil pipeline.
? Cooper Basin exploration success: 1 new oil field discovery (Windmill-1) and 2 very successful development/appraisal wells (Butlers-5 and Butlers-6).
Tunisia well planning good progress: -
Managing Director's Comments"In the September Quarter the Company continued to make very good progress with the implementation of the plans announced in late 2011. This included:
? increased focus on seismic acquisition and processing, particularly in the Cooper Basin and Otway
Basin, to prepare good opportunities for future drilling;
? increasing the shareholding in Bass Strait Oil consistent with the focus to build the Eastern Australia gas position; and
? reduced international exploration expenditure outside of the core assets with the withdrawal from 4
Poland licences.
Total oil production was constrained by Cooper Basin oil transport capacity. This will increase when the new Lycium to Moomba oil pipeline commences operations which is expected during the December 2012 Quarter. The increasing oil production in Indonesia is pleasing.
Plans for the Head Office move to Adelaide by December 2012 are progressing well.
The next 6 months will see a material increase in exploration activity with at least 8 wells planned to be drilled in the Cooper Basin, Otway Basin and Tunisia."
CorporateBass Strait Oil interest to 19.9%
On 13 August 2012 Cooper Energy Limited ("Cooper" or the "Company") announced plans to increase its interest in Bass Strait Oil Company Limited (ASX: BAS, "Bass") to 19.9% through a private placement and agreement to sub- underwrite a pro-rata rights issue by Bass. At the same time Cooper agreed in principle to enter into a Technical Services Agreement under which Cooper may supply technical and commercial support to Bass.
Another Bass shareholder (Oil Basins Limited, ASX: OBL) sought to have the shares issued to Somerton Energy
Limited (a wholly owned subsidiary of Cooper) set aside. The Federal Court declined to make the orders sought by OBL.
The Bass portfolio of assets in the Gippsland Basin and Otway Basin complements Cooper's interest in these areas and is consistent with Cooper's strategic focus on Eastern Australia gas opportunities.
Head Office relocation
On 20 August 2012 Cooper confirmed plans to relocate the Head Office from Perth to Adelaide in December 2012. The move has both strategic and cost benefits for the company.
Recruitment of staff for the Adelaide Head Office is now well underway.
Annual General Meeting
The 2012 Annual General Meeting of Cooper Energy Limited will be held at 10a.m. on Friday 9 November, 2012 at
The Traders Lounge, Hyatt Regency Hotel,
99 Adelaide Terrace, Perth,
Western Australia,
Australia.
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Financial
Revenue for the September 2012 Quarter was A$11.7 million -
compared with A$14.2 million from the June 2012
Quarter. As at 30 September 2012 there was 97,600 barrels of
produced oil but for which the sales revenue had not yet been
received.
Cash and term deposits at 30 September 2012 were A$50.2
million (including security deposits of A$2.4 million). In
addition, available for sale financial assets (before marking
to market) totaled A$19.3 million at 30 September
2012.
Production - Cooper Basin
Oil production (Cooper share) for the September 2012 Quarter
of 99,260 barrels (June Quarter 130,578 barrels) in the
Cooper Basin was 24% lower than the previous quarter. The
average price received for Cooper Basin crude oil sales was
A$112 per barrel.
Oil production from PEL 92 has been trucked to Moomba from
Tantanna since the closure of the Tantanna to Gidgealpa
pipeline on 1 June 2012. Trucking will continue until the
existing pipeline infrastructure in PEL 92 is connected to
the Lycium to Moomba oil pipeline, which is currently under
construction. The new Lycium to Moomba pipeline is expected
to be operating during the December Quarter 2012. Once
connected, Cooper Basin production is expected to increase to
greater than 1,500 bopd (Cooper share). This compares to
1,079 bopd average during the September 2012 Quarter.
Minor disruptions to production were experienced in PEL93 due
to the Warrior-1 workover.
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Exploration and Development - Cooper Basin
The Christies oil field development activity continued with the completion of Christies-7. In September the company commenced a four well drilling campaign in PEL 92 (Cooper 25%). Drilling of two of the wells were completed during the September 2012 Quarter;
? Butlers-5, a development well spudded on 5 September, penetrated an 8 metre gross oil column in the
Namur Sandstone and was cased and suspended for future completion as an oil producer.
? Butlers-6, a development well spudded on 13 September, penetrated a 6 metre gross oil column in the
Namur Sandstone and was also cased and suspended for future
completion as an oil producer.
Both wells intersected the Namur Formation high to prognosis
and will likely result in an increase to the Butlers oil
field reserves. It is expected that the wells will accelerate
production from the Butlers field and be bought into
production in the March 2013 Quarter.
Since 30 September 2012, the Windmill-1 exploration well
discovered oil in the Namur Sandstone and within the
Birkhead Formation and was cased and suspended. The Tinah-1
exploration well was plugged and abandoned.
During the Quarter, acquisition of the Porcatus 2D Survey
(105 line km) in PEL 92 was completed. Acquisition of the
Irus 3D Seismic Survey (588 km2) commenced and
is expected to be completed in December 2012. Processing of
the Rincon 3D Seismic Survey and the Fusinus 2D survey was
ongoing and interpretation of this data is expected to
commence in November 2012. 3D seismic acquisition in PEL 90
and PEL 110 is also planned
during the Financial Year 2012/13. The new seismic data will
be used to assist in the delineation of well locations for
exploration and appraisal drilling of up to six wells in the
later part of Financial Year 2012/13.
September Quarter 2012 Drilling and Recent Seismic Surveys in PEL 92
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Exploration - Otway Basin
During the September 2012 Quarter processing of the Mactra 2D
Seismic Survey (102km) in PEP 168 (Cooper
50%) and the Nunga Mia 3D Seismic Survey (70km2)
in PEL 186 (Cooper 33.33%) was ongoing. This data is expected
to be ready for interpretation in October 2012. The results
of these surveys will be used to delineate locations for
drilling later in Financial Year 2012/13.
The Sawpit-2 exploration well in PEL 495 (Cooper 65%) is now
expected to commence drilling in the March Quarter 2013 and
the drilling will be operated by Beach Energy. The well
timing has been moved to maximize the opportunity to share
mobilization costs with other Operators planning to drill in
the region. Sawpit-2 will test a conventional oil target and
evaluate the Casterton Formation unconventional play.
Otway Basin Permits and Sawpit-2 Location
Exploration - Gippsland Basin
On 24 August 2012, the Victoria Government announced a
moratorium on fracture stimulation. It is anticipated that
the moratorium will be lifted once a national framework for
fracture stimulation is announced by the Federal and State
Governments. The fracture stimulation and testing of Wombat-4
and Boundary Creek-2 (Cooper
earning up to 16.7%) will not proceed until the moratorium is
lifted.
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TunisiaExploration
Planning for the drilling of the Hammamet West-3 well in the
Bargou Exploration Permit (Cooper 30%) has progressed well.
The well is located offshore in water depths of approximately
50 metres. Two vertical wells previously drilled have proven
the presence of a potentially large oil column in the target
Abiod Formation. The objective at Hammamet West-3 is to drill
a highly deviated wellbore through the Abiod formation and
then test to confirm oil productivity.
The jack-up drilling rig "GPS Jupiter" has been secured from
Grup Servicii Petroliere SA (GSP). The rig is currently under
contract to Sterling Resources in Romania. The timing of the
spud of the Hammamet West-3 well is dependent on when the rig
is released and the current expectation is to spud mid-March
2013 Quarter. Cooper's contribution to the well will be fully
funded up to a gross amount of US$26.6 million by Dragon Oil
(55%) and Jacka Resources (15%).
Processing of the 3D seismic survey in the Nabeul Permit
(Cooper 85%) was completed and interpretation has commenced.
The results of the seismic interpretation will be an
important input for the farm-out discussions being planned
for 2013 ahead of selecting and drilling the best exploration
prospect within the Nabeul Permit.
Offshore Tunisia Block's and Hammamet West-3 Well Location
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IndonesiaProduction
The Cooper Energy oil entitlement from the Sukananti KSO for the September 2012 Quarter was 4,796 barrels. This was a 45% increase from the June 2012 Quarter. Minor disruptions to production were experienced due to equipment failure which has now been rectified. Further increased oil production from the Company's Indonesian assets is being pursued and the reactivation and work over of the Tangai-1 well planned for the December Quarter 2012 is the next step in this plan.
Exploration
Interpretation of recent 3D seismic in the Sukananti KSO has
been completed and the results are being evaluated. This work
is expected to lead to the drilling of one well during 2013.
Preparations for the acquisition of
600 km of 2D seismic in the Sumbagsel PSC are ongoing.
Discussions are also underway with parties interested to
farm-in to Sumbagsel which is 100% held by Cooper.
South Sumatra Blocks and Tangai-1 Well Location
PolandExploration
COE (40%) has withdrawn Licenses 433, 434, 435 and 455. The process to divest Licenses 414 and 415 is ongoing.
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Production Summary and Financial HighlightsDescription Units
Half Year
31
December
2011
Full Year
30
June
(5)
2012
Quarter
30
June
2012 (5)
Quarter
30
September
2012
Audited Audited Unaudited Unaudited
PRODUCTION
Group oil produced and sold Barrels 225,291 517,186 133,873 104,056
Group sales revenue A$000 25,803 59,606 14,421 11,654
LIQUID ASSETS
Cash and term deposits A$000 64,287 61,461 61,461 50,175
GROUP EXPENDITURE
Exploration (1) A$000 12,698 18,489 4,872 440
Development A$000 4,885 11,175 4,321 3,760
Production expenses A$000 5,365 13,109 3,716 3,119
Royalties A$000 2,127 5,053 1,201 1,147
Corporate taxation A$000 3,488 (5,255) (10,749) 1,846
GROUP RESULTS
Working capital (2) A$000 Available for sale financial assets (3) A$000 EBITRDAX (4) A$000 Profit/(Loss) before tax A$000 (Loss)/Profit from discontinued operations A$000 | 67,964 55,331 1,049 15,198 15,188 33,449 11,817 21,006 (12,432) (17,880) | 55,331 52,205 15,198 19,265 |
Profit/(loss) after tax and discontinued operations A$000 | (4,103) 8,381 |
CAPITAL
Issued shares millions 292.576 327.329 327.329 328.694
Unlisted Options millions 11.620 0.600 0.100 0.100
Performance Rights millions - 5.856 5.856 4.089
Notes:
1. Exploration expenditure includes exploration expenditure for continuing operations.
2. Working Capital is Current Assets less Current Liabilities excluding exploration assets classified as held for sale..
3. Available for sale financial assets at cost
4. EBITRDAX = Earnings before interest earned, taxation, royalties, depreciation, amortisation and exploration and other write off's.
5. The June 2012 quarter numbers have been updated post the June 2012 annual audit.
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Cooper Energy LicencesAustralia License COE Equity Operator Notes
Cooper Basin PEL 90 (Kiwi) 25% Senex
PEL 92 (1) 25% Beach Oil production
PEL 93 (1) 30% Senex Oil production
PEL 100 19.16% Senex
PEL 110 20% Senex
Otway Basin PEL 186 33.33% Cooper PEL 495 65% (2) Cooper(3) PEP 150 20%(4) Beach PEP 151 75% Cooper
PEP 168 50% Beach
PEP 171 25%(4) Beach
Gippsland Basin PRL 2 Earning up to 16.7% Beach
Tunisia Bargou 30% (5) Cooper
Hammamet 35% Storm
Ventures
Nabeul 85% (6) Cooper
Poland MUA 2 40% RWE
Indonesia Sukananti KSO 55% Cooper Oil production
Sumbagsel PSC 100% Cooper
1. Oil fields are separate licenses delineated from within these original exploration licenses.
2. After farm-in by Beach Energy, which is partially funding Sawpit-2 to earn 35%.
3. Beach will operate the drilling of Sawpit-2.
4. Subject to Native Title Agreement.
5. Subject to farm-in by Dragon Oil and Jacka Resources.
6. Enterprise Tunisienne d"Activities Petrolieres (ETAP) can back in up to 55% in the event of a commercial hydrocarbon development.
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Disclaimer
The information in this report
? Is not an offer or recommendation to purchase or subscribe for shares in Cooper Energy Limited or to retain or sell any shares that are currently held.
? Does not take into account the individual investment objectives or the financial situation of investors.
? Was prepared with due care and attention and is current at the date of the report.
? Actual results may materially vary from any forecasts (where applicable) in this presentation.
? Before making or varying any investment in shares of Cooper Energy Limited, all investors should consider the appropriateness of that investment in light of their individual investment objectives and financial situation and should seek their own independent professional advice.
Hydrocarbon Reporting Standard
? Cooper Energy reports hydrocarbons in accordance with the SPE Petroleum Resources Management System
2007 (SPE-PRMS).
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