Victoria Petroleum Plans Busy Drilling Schedule

Victoria Petroleum NL has scheduled an active exploration, appraisal and production testing program of 7 wells within the USA and Australia over the next three months with the Eagle North-1 California appraisal well, the drilling and testing of 3 wells in the Texas Flour Bluff Gas Project, 3 Mirage development wells and 6 exploration wells in the South Australia Cooper Basin and one exploration well in the Queensland Surat/Bowen Basin.

An active exploration and development drilling program will continue over the following four months with up to a further 9 wells to be drilled for a total of 16 wells over the next nine months.

Commenting on the active drilling program planned for 2006, Victoria Petroleum managing director John Kopcheff said:

"We will be kicking off 2006 with the Eagle North-1 appraisal well in California in early January."

"This is a much awaited well and we and the partners, First Australian, Lakes Oil and Sun consider this to be "unfinished business" seeing we made the Eagle oil discovery back in 1986."

"In our other core area of operations we will start a three well development program in the South Australian Cooper Basin on the Mirage Oil Field with a follow on six exploration wells."

"The aim of the Mirage development program is to get oil production up to the 1,000 barrels of oil per day level by mid 2006."

"We are very hopeful that with the follow on 6 well exploration program that we will repeat the 50% exploration success rate in our last exploration program in the area, although there is no guarantee of that."

"The year 2006 looks to be an active year for Vicpet in which with success we will build on our current oil and gas production in Australia and the USA."

The timing of the drilling of each well and the Victoria Petroleum NL interest in each well and permit is subject to rig, lease availability and farmout and government approval to drill.