Cooper Energy : Reserves Statement 27 February 2017

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Cooper Energy Limited ("Cooper Energy", ASX: COE) announces updated reserves and contingent resources assessment as at 1 January 2017. All reserves and contingent resources in this document are net to Cooper Energy.

Cooper Energy's 2P Reserves at 1 January 2017 are assessed to be 11.6 million barrels of oil equivalent (MMboe). This is an increase of 8.7 MMboe from 30 June 2016. The key factors contributing to the revision are;

• the acquisition of Santos Ltd's offshore Victoria assets (excluding Minerva, which is subject to completion), effective 1 January 2017;

• Cooper Basin drilling results in the first half of FY17 and production of 130 kbbl oil; and

• imminent divestment of the Indonesian production assets to Bass Oil Ltd. effective 30 September 2016 and production of 26kbbl oil to 30 September 2016 (see notes)

1. The reserves revisions include Cooper Energy's share of future crude fuel usage in the Cooper Basin. The estimated fuel usage for PEL 92 is: 1P

   0.02 MMbbl, 2P 0.03 MMbbl and 3P 0.06 MMbbl. The estimated fuel usage for the Worrior Field (PPL 207) is: 1P 0.01 MMbbl, 2P 0.02 MMbbl and 3P 0.03 MMbbl.

2. The Otway gas reserves for Casino, Henry and Netherby fields are net of fuel gas.

3. Totals may not reflect arithmetic addition due to rounding. The method of aggregation is by arithmetic sum by category. As a result, the 1P estimate may be conservative and the 3P estimate may be optimistic due to the effects of arithmetic summation. The conversion factor of 1 PJ = 0.172 MMboe has been used to convert from Sales Gas (PJ) to Oil Equivalent (MMboe).

As previously announced the acquisition of the Victorian gas assets of Santos Limited was completed on 10 January 2017. The assets included a 50% interest in the producing licences VIC/L24 and VIC/L30 in the offshore Otway Basin. The process for the transfer of operatorship to Cooper Energy has commenced and is expected to be completed by mid-2017. The licences contain the Casino, Henry and Netherby gas fields and are located 18-25 kilometres offshore Victoria in water depths ranging from 65 metres to 71 metres. Participating interests in VIC/L24 and VIC/L30 are:

• Cooper Energy (CH) Pty Ltd Limited (50%) 1

• Mitsui E&P Australia Pty Ltd (25%)

• Peedamullah Petroleum Pty Ltd (AWE, 25%)

  1 as beneficial owner of the participating interest under the JOA pending legal transfer of the title from Santos Ltd.

  A production licence covering the Casino Field, VIC/L24, was granted in April 2005. In January 2009, the VIC/L30 production licence was granted over the Henry and Netherby fields. Production from the Casino field commenced in 2006 and from the Henry and Netherby fields in 2010 via subsea wells and an offshore pipeline production system to the onshore Iona gas plant. The fields are three-way fault closed structures with the gas-bearing reservoir being the Waarre Formation of the Sherbrook Group.

  Reserves for the Casino, Henry and Netherby fields have been assessed by Cooper Energy. The Reserves have been assessed using deterministic and probabilistic methodologies for the Waarre Formation at the Casino, Henry and Netherby fields. This methodology incorporates a range of uncertainty relating to each of the key reservoir input parameters to predict the likely range of outcomes.

  Cooper Energy undertook the following analytical procedures to estimate the Reserves:

• Independent interpretation of 3D seismic data;

• Analysis of historical production data to assess accessed gas volumes and future production forecasts;

• Review of the Operator's reservoir and production simulation models to define raw gas recovery consistent with existing processing facilities; and

• Independent probabilistic Monte Carlo statistical calculations to establish the range of recoverable gas The date of this Casino, Henry and Netherby Reserve Assessment is 24 February 2017.

  As previously announced, an agreement was signed for the sale of the company's 55% interest in the Tangai- Sukananti KSO to Bass Oil Limited. The acquisition was approved by Bass shareholders on 13 February 2017 and completion is imminent. The reserves, 1P 0.8 MMbbl oil, 2P 1.7 MMbbl oil and 3P 3.1 MMbbl oil, have not been included in the current reserves update.

  Contingent Resources

  Cooper Energy's 2C contingent resources at 1 January 2017 have increased by 15.4 MMboe since 30 June 2016 to a total of 74.4 MMboe. The key factors contributing to the revision are;

• the acquisition of the remaining 50% participating interest in the Sole gas field, VIC/RL3 offshore Gippsland;

• the exit of Beach Energy from the BMG joint venture taking Cooper Energy equity in the Basker and Manta fields in VIC/RL 13, 14 and 15,offshore Gippsland Basin, to 100%;

• imminent divestment of the Indonesia production assets to Bass Oil Ltd. effective 30 September 2016 (see notes); and

• withdrawal from the Bargou permit in Tunisia.

1. Totals may not reflect arithmetic addition due to rounding. The method of aggregation is by arithmetic sum by category. As a result, the 1C estimate may be conservative and the 3C estimate may be optimistic due to the effects of arithmetic summation.

2. The conversion factor of 1 PJ = 0.172 MMboe has been used to convert from Sales Gas (PJ) to Oil Equivalent (MMboe).

1. Resources at 30 June 2016 as reported to the ASX on 15 August 2016.

2. Totals may not reflect arithmetic addition due to rounding. The method of aggregation is by arithmetic sum by category. As a result, the 1C estimate may be conservative and the 3C estimate may be optimistic due to the effects of arithmetic summation.

   Notes on Sole and Indonesia Contingent Resources Estimate

   The contingent resources include estimates for the Sole gas field in VIC/RL3 in the Gippsland Basin. Sole is located 45 km offshore Victoria in water depths ranging from 120 metres to 130 metres. Cooper Energy holds 100% interest in VIC/RL3 at 1 January 2017, pending legal transfer of the title and Operatorship from Santos Ltd. The Sole field was discovered by Shell in 1973 by the Sole-1 exploration well. Sole-2, an appraisal well drilled by OMV Australia in 2002, confirmed the extent of the field. The Sole field structure is the easternmost discovery in the Gippsland Basin. The field is a simple four-way dip closed structure with the gas-bearing reservoir being the Kingfish Formation of the Latrobe Group.

   The contingent resource for the Sole field has been re-estimated assuming a two well subsea development plan. Advantages of a two well plan compared to the previous single well development include:

   • increased 2C estimate attributable to accessing previously undeveloped gas; and

   • reduced technical risk and enhanced field redundancy providing increased security of supply to the gas processing and gas sales agreements.

     Contingent resources for the Sole field were released to the ASX on 26 November 2015. Post-acquisition of the remaining 50% equity in the Sole gas field the following methodologies were used by Cooper Energy to re-calculate the Sole contingent resource estimate:

   • probabilistic simulation modelling for the Kingfish Formation;

   • incorporation of a range of uncertainty relating to each of the key reservoir input parameters to predict the likely range of outcomes; and

   • review of the reservoir and simulation modelling assuming a two well subsea development. The date of the Sole contingent resource assessment is 24 February 2017.

1. Resource at 30 June 2016 as reported to the ASX on 26 November 2015 and attributed to Cooper Energy 50% interest in VIC/RL3.

2. The conversion factor of 1 PJ = 0.172 MMboe has been used to convert from Sales Gas (PJ) to Oil Equivalent (MMboe).

3. Attributed to Cooper Energy 100% interest in VIC/RL3.

As previously announced, an agreement was signed for the sale of the company's 55% interest in the Tangai- Sukananti KSO to Bass Oil Limited. The acquisition was approved by Bass shareholders on 13 February 2017 and completion is imminent. The 2P contingent resources of 0.4MMboe have not been included in the current reserves update.

Cooper Energy has completed its own estimation of reserves and contingent resources based on information provided by the permit Operators Beach Energy Ltd, Senex Ltd and Santos Ltd, and in accordance with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources Management System (PRMS). Petroleum Reserves and Contingent Resources are prepared using deterministic and probabilistic methods. The method of aggregation for all reserves and contingent resources tables is by arithmetic summation by category. Aggregated 1P and 1C estimates may be conservative and aggregated 3P and 3C estimates may be optimistic due to the effects of arithmetic summation. Totals may not exactly reflect arithmetic addition due to rounding.

The information contained in this report regarding the Cooper Energy reserves and contingent resources is based on, and fairly represents, information and supporting documentation reviewed by Mr Andrew Thomas who is a full-time employee of Cooper Energy Limited holding the position of General Manager Exploration & Subsurface, holds a Bachelor of Science (Hons), is a member of the American Association of Petroleum Geologists and the Society of Petroleum Engineers, is qualified in accordance with ASX listing rule 5.41, and has consented to the inclusion of this information in the form and context in which it appears.