Victorian Petroleum Boosting Production at Mirage Field

Victoria Petroleum

Victoria Petroleum says preparations for the completion of the Mirage-3 and Mirage-4 oil wells to boost production at the Mirage Field in PEL 115 in South Australia are well advanced. BJ Services have been contracted to perform fracture stimulation of the Murta reservoir sands and that the equipment to perform these operations is in the process of being mobilized from New Zealand and is expected to be on site in South Australia on July 20, 2006.

Following the stimulation treatment of the wells, they will be placed on pump and oil will be produced via flowlines to the central production facility located at Mirage-1. The pumping unitswhich have been manufactured in China arrived in Australia on June 23, 2006, and are being transported to the Mirage field area for installation once the wells are stimulated. Installation of the flowlines will commence on July 10, 2006, subject to final regulatory approvals being received.

Commenting on the operations, Victoria Petroleum NL's Managing Director John Kopcheff said, "We are pleased that the development of the field is progressing satisfactorily. The fracture stimulations will enhance the ability of the Murta reservoir to flow oil. This stimulation technique has been used successfully by other operators in the Cooper Basin, including SANTOS who now routinely fracture stimulate their Murta wells, to enhance production from this thin but highly productive reservoir. Should the stimulation work prove satisfactory, as expected, then it is likely that additional stimulation will be carried out on the remaining wells in the Mirage area."

The participants in the Mirage Oil Field and PEL 115 and their respective interests are Victoria Petroleum N.L as operator with 40%; Impress Energy Limited with 40% and Roma Petroleum N.L. with 20%.