2016 Annual Report

Cooper Energy Limited

ABN 93 096 170 295

Front cover: Orbost Gas Plant, East Gippsland, Victoria, Australia. Cooper Energy holds a 50% interest in the plant which is connected to the Eastern Gas Pipeline and positioned to be a hub for onshore processing of gas from offshore Gippsland Basin gas fields, including the company's Sole and Manta fields. Minor modifications are proposed to the plant as part of the Sole Gas Project, which is currently being prepared for final investment decision. Inside and back cover: Process flow diagrams for the Orbost Gas Plant.

Reporting Period,

Terms and Abbreviations

Annual Report

This document has been prepared to provide shareholders with an overview of Cooper Energy Limited's performance

for the 2016 financial year and its outlook. The Annual Report is mailed to shareholders who elect to receive a copy and is available free of charge on request (see Shareholder Information printed in this Report).

The Annual Report and other information about the company can be accessed via the Company's website at www.cooperenergy.com.au

Notice of Meeting

The 2016 Annual General Meeting of Cooper Energy Limited ABN 93 096 170 295 (Company) will be held at 10.30 am (ACDT) on Thursday, 10 November 2016 in the

PwC Building, Level 11, 70 Franklin Street, Adelaide, South Australia.

A formal Notice of Meeting has been mailed to shareholders. Additional copies can

be obtained from the Company's registered office or downloaded from its website at www.cooperenergy.com.au

Abbreviations and terms

This Report uses terms and abbreviations relevant to the company's accounts and the petroleum industry.

The terms "the company" and "Cooper Energy" and "the Group" are used in this report to refer to Cooper Energy Limited and/or its subsidiaries. The terms "2016", FY16 or "2016 financial year" refer to the 12 months ended 30 June 2016 unless otherwise stated. References to "2015", FY15 or other years refer to the 12 months ended 30 June of that year.

Other abbreviations

bbl: barrels of oil

boe: barrels of oil equivalent

bopd: barrels of oil per day

$: Australian dollars

FEED: Front End Engineering & Design

FID: Final Investment Decision

FTE: Full Time Equivalent

GJ: gigajoules

JOA: Joint Operating Agreement

km: kilometres

LNG: liquified natural gas

LTI: loss time injury

m: metres

SCF: standard cubic feet

PJ: petajoules

1C: Low estimate contingent resources 2C: Best estimate contingent resources 3C: High estimate contingent resources 1P: Proved reserves

2P: Proved & probable reserves

3P: Proved, probable & possible reserves

MMbbl: million barrels of oil

MMboe: million barrels of oil equivalent

SCF: standard cubic feet

TRCFR: total recordable case frequency rate

Reserves and resources

Cooper Energy reports its reserves and resources according to the SPE (Society of Petroleum Engineers) Petroleum Resources Management System guidelines (PRMS).

Reserves are those quantities of petroleum anticipated to be commercially recoverable by application of development projects

to known accumulations from a given date forward under defined conditions.

Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies.

In PRMS, the range of uncertainty is characterised by three specific scenarios reflecting low, best and high case outcomes from the project. The terminology is different depending on which class is appropriate for the project, but the underlying principle is the same regardless of the level of maturity. In summary, if the project satisfies all the criteria for Reserves, the low, best and high estimates are designated as proved (1P), proved plus probable (2P) and proved plus probable plus possible (3P), respectively. The equivalent terms for contingent resources are 1C, 2C and 3C.

Rounding

Numbers in this report have been rounded. As a result, some figures may differ insignificantly due to rounding and totals reported may differ insignificantly from arithmetic addition of the rounded numbers.

1

Our business is finding, developing and commercialising oil and gas.

We do this with care and strive to provide attractive returns for our shareholders and good commercial outcomes for our customers.

Key features:

• cash generating oil production from the western flank of the Cooper Basin

• gas resources that are well positioned, and being prepared for, supply to eastern Australian customers

• a management team and board with proven success in exploration, gas commercialisation and building resource companies.

  Key figures:

  For the year ended 30 June 2016

  Production: 465,000 barrels of oil

  Average production cost: A$29.71 per barrel Net (debt)/cash and investments: $50.8 million

  2P Reserves: 3.0 million barrels of oil

  2C Contingent Resources*: 64.3 million boe

  Shares on issue: 435.2 million

  *Contingent resources reported above supersede that reported to the ASX on 15 August 2016 (including the Operating and Financial Review of that date which is included in this report) due to revisions to reflect 100% ownership of the BMG gas and liquids resource and downward revisions to Tunisian contingent resources following confirmation of withdrawal from the Hammamet permit.

  The year in brief

  Key themes

  Operating soundly and with care in a low oil price environment

  • Direct operating cash cost of A$29.71/bbl, average price A$60.75/bbl

  • General and administration costs reduced 9%

  • Drilling curtailed to preserve cash

  • 963,000 hours worked with zero lost time injuries or recordable cases

  • 380 hours worked for charitable causes under Cooper Energy's Making a Difference program

    Gas projects moving forward

  • Heads of Agreement secured for foundation gas sales from Sole Gas Project

  • Front End Engineering & Design of Sole Gas Project

  • Upgrades to Contingent and Prospective Resources for Sole and Manta

    Concentration of our portfolio consistent with strategy

  • Sale of Indonesian exploration assets

  • Divestment process for Indonesian production assets

  • Staged withdrawal from Tunisia

3.08 3.00

2.16

1.88

2.01

0.52

0.49

0.59

0.48 0.46

2012 2013 2014 2015 2016

2012 2013 2014 2015 2016

Proved & probable (2P) reserves

million barrels of oil at 30 June

Production

million barrels

2