Jamaica Joint Venture Exploration Program Enters New Phase

Gippsland Offshore Petroleum and their partners in the Jamaica Joint Venture (Finder Exploration Pty Ltd) report that the extensive exploration program for the Walton Basin has entered a new phase. Acquisition of the extensive long offset 2D seismic program was completed ahead of schedule and the Fugro operated vessel Akademik Shatisky is currently demobilizing.

Completion of the seismic coincides with the Petroleum Corporation of Jamaica (PCJ) granting exploration rights to the Jamaica Joint Venture an additional offshore permit: Block 6. The JV applied to the PCJ for this additional block after completing the reprocessing of old seismic data in the area and identifying prospective zones within the unlicensed block. The timely award of Block 6 is testimony to the excellent working relationship that the Jamaica Joint Venture has established with the PCJ.

The award of Block 6 increases the JV's acreage holding in the Walton Basin, offshore Jamaica to approximately 14,000 square kilometers.

The award of the additional block also triggers the commencement of the BHP Billiton FALCON airborne gravity gradiometer survey which is due to start later this week. The FALCON technology will be employed over blocks 6, 7 and 10 to map structure, lithology of the basins and in particular to provide detailed information on the reefs which are the key exploration play for most of the region. It is the first survey that Gippsland Offshore will be flying with BHP Billiton under their recently signed technology agreement.

The integration of the extensive long offset seismic data and the detailed FALCON will be an exciting first for oil and gas exploration around the world. Gippsland Offshore and Finder Exploration bring unique technical expertise to the acquisition and interpretation of these data that will be key to unlocking the potential in Jamaica.

The joint venture is well underway to meet their target schedule for data acquisition and interpretation that aims to identify drillable prospects by the end of 2006/early 2007.