Victoria Petroleum to Participate in W San Antonio-1 Project

Victoria Petroleum has entered into a participation agreement with Trio Petroleum Inc which will see Victoria Petroleum participate in the immediate drilling of West San Antonio No. 1 on the West San Antonio Prospect, Salinas Basin, California, as part of Victoria Petroleum's ongoing 2004 California drilling program.

The West San Antonio Prospect is a multiple target oil prospect interpreted to have the potential to contain up to 24 million barrels of recoverable oil and 56 billion cubic feet of gas in the target Miocene sands, if oil and gas are present.

Although Victoria Petroleum NL considers the West San Antonio No. 1 well to be drilled exploratory in nature, the potential for oil to flow from the target horizons is considered encouraging in view of the strong oil shows observed in a down dip 1959 well drilled six hundred meters to the south east of the West San Antonio No. 1 location.

Further encouragement for the presence of oil in the West San Antonio Prospect area is provided by adjacent production of 500 million barrels of oil from the San Ardo Field, 15 kilometers to the north.

Drilling of the West San Antonio No. 1 well by the Operator, Trio Petroleum Inc, to a planned total depth of 2,042 meters is planned to commence on 16th January 2004 and take 24 days to reach total depth.

Victoria Petroleum has a 5% working interest in the West San Antonio No. 1 well with private American interests holding the balance.

Any hydrocarbons discovered in the West San Antonio No. 1 well and prospect are commercially very attractive as an oil pipeline to take any oil production from the West San Antonio Prospect to the San Ardo Oil Field, is situated 3kms from the West San Antonio No. 1 well site at the San Antonio Oil Field in which Victoria Petroleum N.L. has an interest.