Petsec Begins Production at Vermilion 258

Petsec Energy has commenced production from the Vermilion 258 G-2 well located in the Gulf of Mexico, which has stabilized at a rate in excess of eight million cubic feet of natural gas per day, seven million cubic feet per day net to Petsec Energy.

Operations to complete the Vermilion 258 G-1 well are in progress. The well is expected to achieve stabilized production by early August.

A drilling program of up to four wells is planned to commence in the fourth quarter of this year. All of the wells will be drilled from the 'G' Platform. The program calls for a development well to accelerate production and up to three exploration wells.