Victoria Petroleum to Complete Mirage-2 as a Producer

Victoria Petroleum reports that wireline logging on the Mirage-2 has been completed and the well will be cased as a potential oil producer. The well is located in the Mirage Oil Field in PEL 115 in the Cooper Basin in Australia

Two cores were cut through the objective Murta oil reservoir, with fluorescence and oil shows being observed through the cored interval.

A preliminary interpretation is that the two cores cut over the interval 1,322 to 1,337 meters have similar oil saturations to those seen in the currently producing Mirage-1 well to the south with the best reservoir interpreted to be present in the interval 1,322 to 1,328.5 meters.

The significance of these oil shows and the potential for commercial production will be evaluated by a short-term flow test upon completion of the well.

Mirage-2 is a Murta sand development well on the Mirage Oil Field and is 580 meters north east of Mirage-1.

Commenting on the results at Mirage-2, Victoria Petroleum NL's Managing Director John Kopcheff said:
"Victoria Petroleum is pleased to have encountered oil shows in the target for the first development well, Mirage-2, on the Mirage Oil Field."

"We look forward to the completion of Mirage -2 as a production well from the Murta reservoir."

"The Mirage-2 well is the first of a three well development program on the Mirage Oil Field."

"If our development program on the Mirage Oil Field is successful, as we hope it will be, we should see an increase in production from the current gross 380 barrels of oil per day to a target 1,000 barrels of oil per day by mid 2006."

"Any increase in oil production from the Mirage Oil Field would be timely in this current time of high oil price."

The participants in the drilling of Mirage-2 and PEL 115 and their respective interests are as follows:

Victoria Petroleum as operator with 40%; Impress Ventures Ltd with 40%; and Roma Petroleum with 20%.