Kitson-1 is located in PEL88 about 200km north-north-east of Moomba in South Australia. There are five potential reservoir horizons – Namur, Birkhead, Hutton, Poolowanna and Tinchoo - with mean recoverable oil estimates of 5.2 million barrels from the Namur Formation.

Cooper Energy CEO Mike Scott said Kitson was the first of a now expanded possible 10-well program that had been prioritised from a large number of prospects identified from interpretation of seismic data shot during 2004.

"The upcoming 2005/2006 drilling program will provide investors with leverage to potential undiscovered recoverable reserves of 23.8 million barrels of oil," he said.

Partners in Kitson are Cooper Energy Limited (30%), Sundance Energy Australia Limited (45%), Enterprise Energy NL (10%), Victoria Petroleum NL (10%) and Liberty Petroleum (Inc) (5%).