Donga-4 Appraisal Spuds in Surat Basin

Victoria Petroleum NL

Victoria Petroleum reports that the Donga-4 appraisal well located in the Donga Oil Field in ATP 805P in the Surat-Bowen Basin of Queensland, Australia has been spud. The 12 day well is being drilled using Australian Drilling Services Rig 6 and targets the Triassic aged basal Moolayember sandstone (Donga sandstone) which was productive at Donga-3. If Donga-4 is successful, the rig will immediately move to drill the Donga-5 appraisal well located 0.55 kilometers north of Donga-4.

Donga-3, drilled in October 2005, recovered 23 barrels of light oil and 39 barrels of formation water from the Donga sandstone on test. Near the end of an extended production test earlier this year, Donga-3 was flowing about 50 barrels of fluid per day with 25% oil cut and is interpreted to have intersected the oil-water contact of the field.

The Donga-4 appraisal well location is offset about 1 kilometer southwest of Donga-3 and Donga-5 is offset about 0.75 kilometers west of Donga-3. The wells are interpreted to intersect the Donga sandstone 10 to 15 meters up dip from Donga-3

Bow Energy's recent assessment of the field suggests it has the potential to contain 2.2 to 5 million barrels of oil with oil recovery contingent on adequate water drive.

The interests in ATP 805P are Bow Energy as operator with 85% and Victoria Petroleum with 15%.