ASX Announcement

Monday, 26 October 2009 COE261009a

Menzel Horr Prospect, Tunisia: Evaluation Update (Cooper Energy 100%)

Dear Shareholders,

Following conclusion of the interpretation of the recently acquired onshore 2D seismic in the Bargou Permit, Tunisia, Cooper Energy is pleased to announce:

• Menzel Horr has been confirmed as a valid exploration target.

• The Prospect is estimated to contain over 90 Menzel Horr million barrels oil in place (P50).

• Prospective Resources of 24 million barrels of oil (arithmetic summation of P50’s over three levels).

• The well design and well proposal is complete.

• Cooper Energy is seeking routes to drill the well in the 2010 timeframe.

The Menzel Horr Prospect lies wholly within the Menzel Horr Bargou Exploration Permit, Gulf of Hammamet, Tunisia, which Cooper Energy was awarded in 2005. Cooper Energy is the 100% owner and Operator of the permit.

The Menzel Horr Prospect is a robust thrust bound dip closed structure and there is the potential for hydrocarbons to exist at multiple reservoir horizons. Potential exists for a much larger upside volume to exist should bounding faults be proven to seal.

The exploration evaluations have estimated the following in-place volumetrics for the Menzel Horr Prospect:

P90 in-place P50 in-place P10 in-place Reservoir (million barrels) (million barrels) (million barrels) Ain Grab Fm Limestone 2 7 22 Bou Dabbous Fm 21 48 89 Limestone Abiod Fm Carbonate 17 39 79 Arithmetic Total 40 94 190

The recoverable oil estimates (classified as Prospective Resources in accordance with SPE PRMS) for the prospect are as follows:

P90 Recoverable P50 Recoverable P10 Recoverable Reservoir Oil Oil Oil (million barrels) (million barrels) (million barrels) Ain Grab Fm Limestone 0.5 2 7 Bou Dabbous Fm 5 11 20 Limestone Abiod Fm Carbonate 5 11 20 Arithmetic Total 10.5 24 47

As the Menzel Horr Prospect lies onshore it is expected that around 1-2 million barrels of recoverable oil will be the minimum field size that can be economically developed.

A Menzel Horr-1 exploration well and production test has been designed by IPSAA in Perth and is expected to cost around US$5 million, depending upon the rig rate prevailing at the time.

Looking forward the plan is:

Activity Timing of activity Seek routes to cost effectively drill the well: Early to mid 2010. - Identify suitable rigs - Initiate Government approvals Drill a Menzel Horr-1 well. Late 2010

Mr Michael Scott, Managing Director of Cooper Energy was noted as saying “The Menzel Horr Prospect is a robust exploration target that lies on-trend with several oil fields. The risk-reward profile of the prospect makes it a material and risk acceptable target. Early success here would be expected to deliver a revenue stream that would assist in the funding of any offshore discoveries. We are keen to pursue the drilling of this target as soon as possible and we are now seeking routes to achieve this.”

Future ASX announcements on Menzel Horr will be made at the appropriate time.

Regards, Cooper Energy Limited

Michael Scott Managing Director

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 presentation. • Actual results may materially vary from any forecasts (where applicable) in this report. • 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.

Person Compiling Information About Hydrocarbons Pursuant to the requirements of the ASX Listing Rules 5.11, 5.11.1, 5.12 and 5.13, the reported recoverable hydrocarbon estimates are based on information compiled by Mr Conrad Todd. Mr Todd holds a BSc in Geology, a MSc in Geology, is a member of the American Association of Petroleum Geologists, a member of the South East Asia Petroleum Exploration Society, a member of the Petroleum Exploration Society of Great Britain, a member of the Petroleum Exploration Society of Australia and has worked in the industry as a practicing geologist and geophysicist for over 25 years. Mr Todd is employed full-time by Cooper Energy as its Exploration Manager and has consented in writing to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Hydrocarbon Reporting Standard Cooper Energy reports hydrocarbons in accordance with Cooper Energy’s Hydrocarbon Reporting Guidelines that is freely available from Cooper Energy’s website (www.cooperenergy.com.au/policies/index.php).