Victoria Petroleum Begins Cooper Basin Program

Victoria Petroleum reports that the first two wells of the planned five wells for the 2004 Drilling Program in the South Australian Cooper Basin have been confirmed by the PEL 115 Joint Venture partners as Hornet-1 and Ventura-1 located in PEL 115 in the Cooper Basin, South Australia.

OD&E Rig-20 has been contracted to drill the Hornet and Ventura wells with an option for an additional two wells in PEL 115.

Site and access work for the Hornet-1 drilling location have been completed and OD&E Rig-20 is currently in the process of being mobilized to the Hornet-1 well site with the anticipated commencement of drilling on August 23, 2004.

Hornet-1 will test the Hornet Prospect, which is interpreted from 3D seismic to have the potential to contain, mean recoverable reserves of 47 billion cubic feet of gas and 2 million barrels of liquids in a combined structural and stratigraphic trap within lower Patchawarra sands, if oil and gas is present.

The target Permian sands in Hornet-1 have flowed gas at up to 5.5 million cubic feet and 220 barrels of condensate per day in the Santos Unit partners Allambi Gas Field 2 kilometers to the north-west.

Hornet-1 is planned to be drilled to a total depth of 2,850 meters, in 20 days.

Following the completion of the drilling at Hornet-1, the drilling rig will be immediately moved to the Ventura-1 drill location to test the Ventura Prospect which is seismically interpreted to have the potential to contain a mean recoverable reserve of 4.6 million barrels of oil and 4.2 billion cubic feet of gas in the target Jurassic Hutton and Namur Sandstones and Permian Patchawarra Formation, if oil and gas is present.

The target Jurassic sands in Ventura-1 have flowed oil at up to 1,275 barrels of oil per day in the Jurassic Narcoonowie Oil Field, 3 kilometers to the northeast.

Ventura-1 is planned to be drilled to a total depth of 2,030 meters in 15 days.

During drilling, Victoria Petroleum as Operator will issue daily drilling reports giving the status of the well including current depth and hydrocarbon shows. This should enable all investors to be fully informed as to the status of the well.

Investors may be aware that all the wells in the current PEL 115, 111 and 104 five well 2004 South Australian Cooper Basin Drilling Program are named after military aircraft.

Participants in the drilling of Hornet-1 and PEL 115 and the respective interest are as follows:

Victoria Petroleum N.L (Operator) 40%
Roma Petroleum N.L. 20%
Impress Ventures Ltd 15%
Entek Energy Ltd 12.5%
Tacnas Pty Ltd 12.5%