Petsec to Start Mobile Bay Drilling Next Month

Petsec Energy Ltd. on Friday issued an update on when it expects to commence its previously announced drilling programs, which have been subject to rig delays of 3 to 4 weeks from initial schedules. Two drilling rigs are expected to be operating in March and four rigs in April.

Mobile Bay 994 (Gulf of Mexico, USA)

Drilling of 1 to 2 wells at the Mobile Bay 994 lease is now expected to commence early in March.

This follows a successful four-well program on adjacent Mobile Bay leases conducted between November 2006 and January this year. These blocks are located approximately 160 kilometers east of New Orleans.

Eugene Island 310 (Gulf of Mexico, USA)

A two-well drilling program at the Eugene Island 310 lease is now expected to commence early in April.

This lease is located approximately 140 kilometers offshore Louisiana and 72 kilometers to the southeast of the Company's Vermilion 258 gas production platform.

Moonshine Project (Onshore Louisiana, USA)

Two rigs have been secured for Moonshine drilling. The first rig is expected to commence drilling in the third week in March, with the second rig to commence in early April.

Petsec Energy Ltd is an independent oil and gas exploration and production company listed on the Australian Stock Exchange. Its focus of operations is on gas in the shallow waters of the Gulf of Mexico and onshore Louisiana Gulf Coast region of the USA, and on oil in the shallow waters of the Beibu Gulf off the south coast of China.