Murta Oil Sands Intersected in Mirage-4 Well

Victoria Petroleum, operator for the PEL 115 joint venture in Australia's Cooper Basin, said on Monday that the operation was drilling ahead in an 8 ½-inch hole from 1,328 meters to 1,337 meters. The interpreted lowest known oil in the Mirage Oil Field is located at 1,337 meters.

John Kopcheff, Victoria's managing director, said that an open hole drill stem test will be carried out in the Murta Formation to test the oil shows observed in the Murta sands within the interval from 1,319 meters to the present depth of 1,328 meters and down to 1,337 meters.

The company notes that the current drill results indicate that Mirage-4 is the highest drill intersection of the Murta oil sands in the Mirage Oil Field, with the top of the Murta pay zone 20 meters above the lowest-known oil. This interpretation will be confirmed by wire line logs, which will be completed after the completion. The primary target for Mirage-4 is the Murta oil sands producing 700 meters to the northwest at Mirage-1.

"Victoria Petroleum is pleased that third development well, Mirage-4 on the Mirage Oil Field, has come in high to prognosis with oil shows in the Murta pay zone," said Kopcheff. "If our Murta development program on the Mirage Oil Field and the Greater Mirage area to be tested by the follow on Lightning and Jindivik wells is successful, as we hope it will be, we should see an increase in production from the current 400 barrels of oil per day to a target of up to 1000 barrels of oil per day by mid-2006." Joining Victoria Petroleum (40 percent working interest) in the drilling of Mirage-4 and PEL 115 are Impress Ventures (40 percent) and Roma Petroleum (20 percent).