Petsec Says Platform Repairs in the Gulf of Mexico Have Been Completed

Vermilion 258

All repair work at the Vermilion 258 platform following Hurricane Rita has been completed and the facility can resume production immediately downstream facilities re-open.

The operator of the downstream sales pipeline, Stingray Pipeline Company, through which production from Petsec's Vermilion 258 gas field is sold, has advised producers that, while it is still too early to accurately estimate when the pipeline will be fully operational, that for planning purposes a two to four month time period appears to be reasonable.

They also advise that there may be the ability to redirect the gas through alternate pipeline networks which may enable an earlier resumption of production. Petsec will continue to liaise with Stingray and the operators of other downstream sales pipelines to achieve the earliest possible return to normal production.

West Cameron 343/352

Similarly all repair work to the West Cameron 343/352 platform has been completed, and the facility is ready to resume production immediately the HIOS sales pipeline can accept gas.

Production from Petsec's West Cameron 343/352 gas field is sold via the HIOS pipeline system which was undamaged but is currently shut-in due to limitations on downstream facilities. There have been no formal announcements regarding the timing of a return to production on this system and Petsec will release any information as soon as it is available.

Business Interruption Insurance

Petsec Energy maintains a business interruption insurance policy which provides coverage for loss of production income after an initial "excess period" of two months.

Main Pass 19

Development of the Main Pass 19 field is continuing with production from the three wells expected to commence mid November 2005. The sales pipeline from Main Pass 19 is currently being laid and the platform is scheduled for load out this week. The third party sales pipeline downstream from Main Pass was not damaged by Hurricanes Rita or Katrina, and continues to operate normally.