Petsec 4 for 4 in the Gulf of Mexico

Petsec Energy has made its fourth commercial gas discovery from the last well in its current four-well drilling program at the Company's Main Pass 19 and 18 leases in the Gulf of Mexico. The successful fourth well has also yielded an oil discovery with the intersection of two oil-bearing sands which Petsec says appear to be commercial.

"All four wells drilled in this current program have been successful and have met the pre-drill mapped potential of 15 to 18 billion cubic feet equivalent (Bcfe) of gas net to Petsec Energy," the Company's Executive Chairman, Mr. Terry Fern, said today.

"The four discovery wells will now be completed for production and are expected to be online within 2 months," Mr. Fern said.

Petsec Energy said the Main Pass 18 G-6 well had reached total depth on March 7, 2006 and encountered five productive sands.

"The pre-drill gas estimate for this well of 8 Bcfe has been met and in addition two oil sands were intersected which at this preliminary stage appear to be commercial," Mr. Fern said.

"Oil samples and pressure data will be taken prior to release of the drill rig to allow further evaluation of the oil discovery, and a review of these results should be concluded within three to four weeks," he said.

The Main Pass 18 G-6 well was drilled from Petsec's Main Pass 19 platform, located 128 kilometers (80 miles) south east of New Orleans, and north of Main Pass 19 where the company recently drilled three new gas discovery wells.

Mr. Fern said the pleasing results from the fourth discovery well has increased the potential for success of other prospects on the Main Pass 18 lease block and the adjacent block Main Pass 103, also held by Petsec Energy.