12 November 2015‌

AGM addresses by the Chairman and Managing Director

Cooper Energy Limited (ASX: COE) releases the addresses to be presented by the Chairman and Managing Director at the Company's Annual General Meeting today at PwC, Level 11, 70 Franklin Street, Adelaide from 10:30 am (ACDST).

About Cooper Energy Limited (ASX:COE) is an ASX listed exploration and production company featuring low cost oil production, a growing portfolio of gas resources and exploration acreage and a management and Board team with a proven track record in building resource companies.

Cooper Energy conducts oil exploration and production in the Cooper and South Sumatra Basins and is building its gas portfolio to address emerging supply opportunities in Eastern Australia. The company has a strong balance sheet, enjoys strong cash flow and is executing a clear strategy driven by shareholder return. www.cooperenergy.com.au

Cooper Energy Limited Level 10, 60 Waymouth Street Phone: +61 8 8100 4900 [email protected] 1

ABN 93 096 170 295 Adelaide, South Australia 5000 Fax (Aust): +61 8 8100 4997 www.cooperenergy.com.au

ASX: COE GPO Box 1819, Adelaide SA 5001

Address by the Chairman, John Conde AO

Cooper Energy Limited 2015 Annual General Meeting, Thursday November 12, 2015

Good morning, and welcome to the 2015 Annual General Meeting of Cooper Energy Limited.

In addressing this meeting, one cannot help but reflect on the change in circumstances since we last met. In my comments last year, I noted Cooper Energy had just reported its best financial results yet and was planning its largest annual drilling program in 2015.

The severe and sustained fall in oil prices in the months that followed impacted profit, balance sheet and share market valuations and activity levels across our industry. While we have a strong balance sheet and prospects, your company has not been immune to the effects.

In Cooper Energy's case, impairments to the carrying value of oil exploration acreage and assets were the principal factor in the loss of $(63.5) million reported for the twelve months to 30 June 2015.

Oil prices are, of course, not within the control of your company. On matters within the company's influence, Cooper Energy generally recorded good results:

• Proved and Probable Reserves were increased 53% to 3.1 million barrels, the highest in the company's history. This outcome is largely attributable to the year's successful drilling in the Cooper Basin and Indonesia. The reserves added amounted to more than 3 times the year's production.

• Contingent Resources (2C) were increased 66% to 58.4 million barrels of oil equivalent (boe). Importantly, 90% of the 23 million boe increase was through the addition of resources in Australia.

• Production of 475,000 barrels of oil, broadly in line with our historical average.

• Our gas strategy made significant progress, moving from the resource identification and acquisition phase of the preceding two years to project development and planning commercialisation.

  The trigger was the acquisition of a 50% interest in the Sole Gas Field and Orbost Gas Plant in the Gippsland Basin in December. Development of the Sole Gas Field is now the subject of Front End Engineering and Design.

• We responded to lower oil prices with measures to protect revenue and cash reserves. General administration costs and capital expenditure were pared

  back from original guidance by 17% and 32% respectively. Hedging positions were taken to mitigate the impact of further downside in oil prices.

  A strong balance sheet was maintained, with cash and investments of $41.3 million at 30 June. This, together with cash flow generated by our low cost oil operations, is forecast to be sufficient to fund our capital expenditure plans for the current financial year.

• Disappointingly, safety performance did not improve with a lost time injury incurred in Indonesia. Four incidents were registered under the broader safety measure of Total Recordable Cases. We are committed to achieving and sustaining improved safety performance with a zero injury/zero incident record being our objective.

So, in summary, while financial performance was affected by oil prices, Cooper Energy concluded the year with strong operational results and the gas reserves and resources that can underwrite the development of a significant and value creating gas business in the coming two to three years.

This position is, with the exception of oil price movements and impacts, consistent with our expectations at the start of the year, and on schedule with the strategy followed since 2012. Moreover, price and demand and supply trends within eastern Australian gas markets are consistent with our forecasts. Our developing gas business and the gas markets we aim to serve are tracking in line with our strategy.

What does this mean for shareholders? As pleasing as it is to report plans proceeding on-track, record reserves and positive cash balance, the core issue is how, and when, the progress made and project potential will translate into value- accretive returns for shareholders.

This is the matter to which I would like to devote the bulk of my remaining comments today, and in particular to brief you on what I see are the three key questions:

1. How is Cooper Energy going to build a gas business from the progress made to date?

2. What does it offer shareholders? and

3. What are Cooper Energy's plans for funding these projects?

First, how we are building the gas business? In 2012, your company identified a future business opportunity for the sale of cost-competitive gas to Eastern Australia from 2016. Cooper Energy foresaw the supply shortfall emerging for the region as existing contracts ran down and expired and additional demand introduced by the commencement of LNG production in Queensland.

Cooper Energy acquired interests in the offshore Gippsland Basin gas fields, Sole and Manta, which are assessed to contain gross 2C Contingent Resources of 317 petajoules of gas, as well as an interest in the Orbost Gas Plant which, with some modification, can process the gas. Our initial focus is on the Sole field. Our plans to commercialise this field have been affirmed by the interest of potential gas buyers, and it is pleasing to note that demand levels and prices are consistent with our expectations and project requirements.

In July we announced the signing of the first heads of agreement with an industrial gas buyer, O-I Australia, and are currently engaged in negotiations with other buyers. It is our firm expectation that these negotiations will secure the sales commitments necessary for our Final Investment Decision on the Sole project development.

Front end engineering and design (or FEED as it is commonly known) for the Sole project is progressing on schedule and within budget, for the Final Investment Decision on development in the September quarter of 2016. Based on current schedules, this means Cooper Energy will generate revenue from the supply of gas from Sole from the January quarter of 2019.

These are long-dated schedules in comparison with our oil developments in the Cooper Basin and Indonesia. However, they are typical for gas commercialisation, and lead to a business offering relatively stable, long term cash flows much greater than the company has recorded. In fact, commercialisation of Sole is transformational for Cooper Energy, offering revenue of between $630 million and

$950 million over a life exceeding 8 years at current equity levels and forecast gas prices.

Manta is a development currently planned to follow Sole and is already attracting interest from gas buyers. Again, on current forecast prices and equities, we estimate that Cooper Energy's 65% share of Manta could generate between $530 million and

$740 million from gas alone, with first production from 2021.

Sole and Manta represent substantial company-changing prizes. Development of these fields would, on current equity levels, transform Cooper Energy from a producer of approximately half a million barrels of oil equivalent per annum to approximately 2.5 million barrels of oil per annum within four years and then step- change again to over 5 million barrels within 6 years.

The value of these projects is clearly not recognised in the company's current share price which, like others in the sector, continues to reflect uncertainty concerning oil prices. It is our expectation that Cooper Energy share prices should better reflect the value of our gas business as the Gippsland Gas project milestones are met and the confidence of commercialisation increases.