Origin Energy Starts 3rd Production Test at Jingemia Field

Origin Energy reports that production testing at the Jingemia Field in Australia commenced over the weekend following regulatory approvals. As of Februry 23rd, the Jingemia-1 well was producing at approximately 1,900 barrels of oil per day.

Production testing has been approved through to May 21, 2004. The aim of the extended production test is to acquire additional information on reservoir performance, water injectivity and pressure maintenance to enable the formulation of a field development plan and confirm the facilities required for permanent field development.

The Joint Venture has agreed that a Jingemia 4 oil development well will be drilled on the field updip of the Jingemia 1 production well. It is planned that this well will be drilled prior to the end of the test utilizing the Century 11 drilling rig. Jingemia 4 is programmed to commence following the Xyris 1 gas exploration well to be drilled in the nearby L1 license area. On current timing Jingemia 4 is expected to commence in April.

Application has been made by the Joint Venture for a Production License covering the Jingemia Oil Field. It is expected that all requirements relating to its issue will be completed during the current extended production test. Once the License is awarded, the field development plan agreed and permanent facilities constructed, the field will move into full production. This is expected to occur by mid-year.

During the period of the test the oil produced will be trucked to the BP oil refinery south of Perth for sale.

Participants in EP 413 and the Jingemia Oil Field are: Origin Energy as operator with 49.189%; Hardman Oil and Gas Pty Ltd with 22.376%; AWE (Perth Basin) Pty Ltd with 15.245%; Voyager (PB) Limited with 6.270%; Victoria Petroleum NL with 5.000%; Norwest Energy NL with 1.278%; ARC Energy Limited with 0.250%; Roc Oil Pty Ltd with 0.250%; and John Kevin Geary with the remaining 0.142%.