Cooper Energy chairman Greg Hancock said the first two Sellicks oil cheques were a pleasant surprise, as the cash received significantly exceeded the budgeted net margin of $25 per barrel of oil. The Sellicks well is operated by Beach Petroleum.

"Sellicks is currently producing at an average weekly rate of about 450 barrels of oil per day (bopd), which is anticipated to increase in the short term to 750 bopd after the installation of water handling facilities," Hancock said.

"Oil is still flowing naturally from Sellicks, however the joint venture partners expect to recomplete the well in the second half of 2003 and to pump oil from a second and lower zone to increase the well's capacity."

Sellicks-1 was discovered in July 2002 (Cooper Energy 25%) and is located approximately 75 km west of the Moomba Processing Plant. Sellicks-1 flowed oil from the Permian Patchawarra Formation at 1,915 barrels per day, being the highest rate from this formation of any previously drilled well in the Cooper Basin.

Cooper Energy has interests in several exploration permits covering parts of the highly prospective, hydrocarbon bearing Cooper Basin in the northeastern corner of South Australia.