COOPER ENERGY LIMITED and its controlled entities

ABN 93 096 170 295

HALF-YEAR FINANCIAL REPORT

31 December 2020

Appendix 4D Interim Financial Report

Cooper Energy Limited

ABN 93 096 170 295

31 December 2020 31 December 2019

Results for announcement to the market

Revenue from ordinary activities

Total (loss)/profit for the period attributable to members

Net tangible assets per share

(inclusive of exploration and development expenditure capitalised)

Percentage Change %

Amount $'000

Dec 20

Amount $'000

Dec 19

24%

(464)%

48,623

(23,058)

19.5 cents

39,090 6,334 27.1 cents

The Directors do not propose to pay a dividend.

The attached Financial Report has been audited.

Review and Results of Operations

The attached Operating and Financial Review provides further information and explanation.

Table of Contents

Page

Operating and Financial Review

3

Directors' Report

11

Auditor's Independence Declaration to the Directors of Cooper Energy Limited

12

Consolidated Statement of Comprehensive Income

13

Consolidated Statement of Financial Position

14

Consolidated Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Notes to the Consolidated Financial Statements

17

Directors' Declaration

27

Independent Review Report to the Members of Cooper Energy Limited

28

Corporate Directory

30

Operating and Financial Review

For the half-year ended 31 December 2020

Operations

Cooper Energy Limited (the "Company" or "Cooper Energy") generates revenue from the supply of gas to south-east Australia and from the sale of oil produced in the Cooper Basin. The Company's operations and activities during the six months to 31 December 2020 ("the period" or "FY21 first half") included:

  • offshore gas production in the Gippsland Basin, Victoria, from the Sole gas field;

  • offshore gas and condensate production in the Otway Basin, Victoria, from the Casino, Henry and Netherby gas fields ("Casino Henry");

  • onshore oil production in the western flank of the Cooper Basin, South Australia;

  • gas exploration in the offshore Gippsland Basin;

  • gas exploration and development in the offshore Otway Basin;

  • gas exploration in the onshore Otway Basin; and

  • oil exploration and development in the Cooper Basin.

The Company is the Operator of all its offshore gas production, exploration and development activities, is the Operator of the Athena Gas Plant and is non-operator of all other onshore production, exploration and development activities.

Workforce

At 31 December 2020, the Company had 86.7 full time equivalent (FTE) employees and 19.5 FTE contractors. This compares with 64.1 FTE employees and 40.4 FTE contractors at the end of the prior corresponding period. A number of contractors were transferred to employee positions during the period as the Company progressed its growth projects and 12 staff were recruited for the Athena Gas Plant operations.

Health Safety Environment and Community

No lost time injuries (LTIs) were recorded during the period (H1 FY20: 1). A total recordable incident frequency rate (TRIFR) of 4.74 was recorded for the period compared with 2.41 for the prior corresponding period. The increase in TRIFR is attributable to lower overall work hours and a single Restricted Work Case incident (contractor strained hamstring) at the Athena Gas Plant.

There were no reportable environmental incidents during the period.

Sustainability

During the half year, Cooper Energy purchased 11,410 ACCU carbon credits through its partnership with BioDiverse

Carbon's Coorong Biodiversity Project. 10,022 of these credits were retired to fully offset the Company's Scope 1, Scope 2 and controllable Scope 3 emissions from FY20, making the company carbon neutral for that period. Formal accreditation of carbon neutral status is in progress with ClimateActive, the Federal Government agency responsible for this activity. Further details are available in the FY20 Sustainability Report, available atwww.cooperenergy.com.au.

Production

Total production for the period of 1.2 MMboe was 82% higher than the prior corresponding period, mainly due to increased production from the Sole gas field. Total gas production of 6.9 PJ was consequently 101% higher than the prior corresponding period. Oil and condensate production of 82.1 kbbl was 21% lower than the prior corresponding period, mainly due to natural field decline in the Cooper Basin.

Commercial

The Company's overarching objective is to maximise sustainable growth in total shareholder return. This involves the development and operation of a portfolio of gas assets to supply the south-east Australia domestic gas market.

Fundamental to this strategy is the Company's management of its gas production and contract portfolios. Cooper Energy seeks to produce gas from the most competitive sources of supply and to maintain a portfolio of contracts with blue-chip utility and industrial gas customers.

During the period and from 1 January 2021, the Company commenced supply of Sole gas to its utility and industrial customers under long-term gas sales agreements (GSAs). These GSAs total 19.75 PJ of gas supply in calendar year 2021 (54 TJ/day average) and provide annual take-or-pay obligations for minimum supply of 90% of the contracted volumes.

Sole gas is processed at the Orbost Gas Processing Plant (OGPP) which is operated by APA. The start-up and commissioning of the OGPP was delayed and the plant has not yet achieved the production level required for Practical Completion (68 TJ/day) and commencement of the long-term Gas Processing Agreement. In August 2020 Cooper Energy and APA entered into a Transition Agreement to provide the framework for commencing Sole GSAs and achieving Practical Completion of OGPP as early as possible. The Transition Agreement provides for revenue and cost sharing mechanisms during some of the commissioning phase and contributions to Cooper Energy for costs incurred in sourcing alternative gas, if required, to service the Sole GSA commitments.

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Cooper Energy Limited published this content on 15 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 February 2021 21:28:06 UTC.