Woodside Terminates Kipper Gas Field Sale

Woodside Petroleum Ltd. has terminated its agreement with Anzon Energy Australia Limited under which Anzon was to acquire Woodside's 30% interest in Retention Lease VIC/RL2, containing the Kipper gas field, in the Gippsland Basin offshore southern Victoria.

Earlier this year, Woodside announced that it had agreed to sell to Anzon its Bass Strait assets VIC/RL2, VIC/RL6, VIC/RL9 and VIC/RL10 for A$65 million subject to joint venture and regulatory approvals.

The sale of Woodside's interests in VIC/RL6, VIC/RL9 and VIC/RL10 was completed on March 15, 2004.

On June 9, 2004, the Kipper Joint Venture Participants were advised by the Victorian Department of Primary Industries that the Department considered production from the Kipper field to be commercially viable and that the Department had therefore rejected the Participants application to renew Retention Lease VIC/RL2.

Woodside also considers that production from Kipper is currently commercially viable. As a consequence of the Department's decision, the joint venture now has one year to apply for a production license.

The other participants in the VIC/RL2 joint venture are Esso Australia Resources Pty Ltd (operator) 25%, BHP Billiton Petroleum (Victoria) Pty Ltd 25% and Santos controlled entities 20%.