Vicpet Unveils 2007 Drilling Schedule

Announcing its drilling schedule for 2007, Victoria Petroleum NL said that 18 exploration and development wells are slated for drilling over the next six months.

Over the next two months, exploration and development drilling activity will be cantered on the Cooper/Eromanga Basin South Australia, Perth Basin Western Australia and the Onshore Gulf Coast Texas USA.

Within the Cooper Basin, exploration activity will focus on Wirraway-1 to be drilled in late March 2007 and the follow on development well, Growler-2, on the late 2006 Growler-1 oil discovery.

Exploration success at Wirraway-1, will further confirm the significance of the Growler oil discovery and the discovery of a new oil production province in the northwest Cooper/Eromanga Basin.

Of the four wells that have been drilled in the Cooper Basin of South Australia and southwest Queensland over the last 2 months, oil was recovered on drill stem test from two wells, Wilpinnie-4 and Telowie-1.

The Wilpinnie-4 oil recovery has enhanced the oil bearing potential of the Tomcat Prospect in PEL 115, with Wilpinnie-4 to be production tested in June 2007 and drilling of Tomcat-1 planned for July 2007.

The recovery of oil from the Murta formation in Telowie-1 provides further encouragement for the potential presence of commercial oil discoveries, targets for drilling in mid 2007, in the northern part of PEL 94 on trend with the adjacent Harpoono oil fields.

In the North Perth Basin, the Jingemia-11 development well has been successfully drilled and it is anticipated will increase gross oil production from the Jingemia Oil Field from 3,200 to 5,000 barrels oil per day. The exploration well Freshwater Point-1 will be now drilled by Origin Energy to explore the oil production potential of the southern part of this North Perth Basin permit.

Within the Texas onshore Gulf Coast basin Margarita Gas Exploration Project, all three shallow gas wells drilled have encountered gas and have been completed for production. Following on from the initial three well program, a further three shallow wells are planned to be drilled in late April 2007 as a precursor to a deeper exploration program planned to commence early second half 2007.

Further exploration and development success in the forthcoming Cooper/Perth/Onshore Gulf Coast Basin drilling programs will add to Victoria Petroleum NL's current net production of 280 barrels oil per day, to achieve the near term target of approximately 500 barrels of oil per day with associated increase in net recoverable oil reserves.