Victoria: Jingemia-11 Reveals Good Oil Shows

Jingemia Field, N. Perth Basin
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Victoria Petroleum NL has been advised by Origin Energy Limited, operator of the L14 Joint Venture and Jingemia-11 oil development well, that at 6 a.m. Western Standard Time Tuesday, the current operation was drilling ahead at 2,528 meters measured depth.

Good oil shows were observed in the drill cuttings of the target Dongara Sandstone over the 31 meter interval from 2,489 metes to 2,520 meters.

Jingemia-11 is being drilled as a directional well to intersect the oil-bearing Dongara Sandstone in a crestal location updip from, and 140 meters to the east of the Jingemia-4 intersection. The well has a planned total depth of approximately 2614 meters.

"Initial drilling results indicate that the well has been successful as a development well in drilling the target oil producing sandstone for the Jingemia Oil Field," said John Kopcheff, Victoria's managing director. "It is now anticipated that the successful completion of Jingemia-11 for production will both increase field reserves and enable Jingemia Oil Field production to increase from the current 3,200 barrels of oil per day to the target of approximately 5,000 barrels of oil per day to capitalize on the current high oil prices of US$60/bbl.

"Based on the seismic 3D mapping of the Jingemia Structure and the Jingemia Oil Field production history, the Jingemia Oil Field is interpreted to have the potential to contain up to 4.6 million barrels of recoverable oil."

Participants in Production License L14 and Jingemia-11 are:

--Victoria Petroleum Offshore Pty Ltd* 5.000%
--Origin Energy Developments Pty Ltd (Operator) 49.189%
--ARC Energy Limited 33.141%
--Voyager (PB) Limited 11.000%
--Norwest Energy NL 1.278%
--Roc Oil Pty Ltd 0.250%
--J. K. Geary 0.142%

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