Petsec Begins Main Pass Drilling Program

Petsec Energy says the Noble Lester Pettus has arrived on site and is currently driving conductor pipes for the four-well drilling program which will test 15-18 billion cubic feet (Bcfe) of gas net to the Company. Petsec Energy is the operator of the program.

The first well is expected to spud on December 9th.

The new drilling program at Main Pass 19 – located 128 kilometers (80 miles) south-east of New Orleans – follows the successful drilling of three initial wells between April and June 2005 which discovered 13 Bcfe of gas net to Petsec Energy.

The production platform acquired for the development of the Main Pass gas field was set late in November and the sales pipeline laid. Hook-up and commissioning is continuing and production from the initial three wells is expected to commence within three weeks.

Petsec Energy Ltd is an independent oil and gas exploration and production company listed on the Australian Stock Exchange. Its focus of operations is on gas in the shallow waters of the Gulf of Mexico and onshore Louisiana Gulf Coast region of the USA, and on oil in the shallow waters of the Beibu Gulf off the south coast of China.