Victoria May Drill 14 Wells in the Next 6 Months

Victoria Petroleum has scheduled an active exploration, appraisal, and production testing program of seven wells within Australia and the U.S. over the next 3 months.

The program will commence with drilling at Reids Dome North in Queensland, followed by the drilling of four exploration wells in Southwest Queensland/South Australian Cooper Basin, and one exploration well in Texas' Gulf Coast region.

An active exploration and development drilling program will continue over the subsequent 3 months with as many as seven additional wells to be drilled for a total of 14 wells over the next 6 months.

"We are kicking off the second half of 2006 with the Primero-1 well on the Reids Dome in Central Queensland," said John Kopcheff, Victoria's managing director. "This is a much-awaited well as we have experienced shallow gas exploration success before but are looking forward to the deeper 300-BCF gas potential."

"In our Australian core area of operations we will start a four-well exploration program in the Southwest Queensland and South Australian Cooper Basin with the drilling of Banff-1 with a follow on eight exploration wells," Kopcheff added. He said that the start of drilling in the Southwest Queensland Cooper Basin in late July is particularly significant because it is the first well that has been drilled in the permit in 10 years.

"We are truly going back to our roots with Banff-1 as this is the area Vicpet drilled first after listing in 1984," noted Kopcheff. "The second half of 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.