Petsec Energy Acquires Stake in Louisiana Venture

Petsec Energy has agreed to earn a 25% working interest (17.5% net revenue interest) in a joint venture onshore Louisiana by contributing to the cost of drilling up to three wells. Drilling is expected to commence in September 2004. The Company will not be operator of the joint venture.

These wells will be additional to Petsec Energy's other announced program of two wells at Vermilion 258 to commence in September 2004, followed by the drilling of one to three wells at Main Pass 19 commencing late 2004.