Bass and IOR Farm into Victorian Otway Basin Permits

Essential Petroleum Resources Limited

John Remfry, managing director of Essential Petroleum Resources Limited (EPR), said that Bass Strait Oil Co. Limited (Bass) and Inland Oil Resources Pty Ltd (IOR) have elected to farm into the Victorian Otway Basin permits PEP 151 and PEP 150 offshore Australia.

As previously announced to the Australian Stock Exchange, Bass and IOR have earned the right to farm-in through their participation in the drilling of the Pritchard-1 well in PEP 151. Because farm-in obligations in PEP 151 have been met, Bass and IOR will each be assigned a 25% interest in the permit.

Following the execution of deeds of assignment and assumption, the participants in the PEP 151 Joint Venture will be:

--Essential Petroleum Resources Limited, 50% (Operator)
--Inland Oil Resources Pty Ltd, 25%
--Bass Strait Oil Co. Limited, 25%

In PEP150 each company will earn a 15% interest by contributing to the drilling of a well in the permit on promoted terms. Following the execution of farmout agreements, the participants in the PEP 150 Joint Venture will be:

--Beach Petroleum Limited, 50% (Operator)
--Essential Petroleum Resources Limited, 20%
--Inland Oil Resources Pty Ltd 15%
--Bass Strait Oil Co. Limited, 15%.