Vicpet Releases Activity Report, Planned Drilling Schedule

John Kopcheff, Managing Director of Victoria Petroleum NL, earlier this week said that the company will soon begin a drilling campaign in its core Australian exploration acreage in the Cooper Basin. He noted that 16 exploration and development wells are planned to be drilled over the next six months.

Over the next three months, exploration and development drilling activity will be centered on the Cooper/Eromanga Basin in South Australia, and the Onshore Gulf Coast Texas USA. Within the Cooper Basin, exploration activity will focus on Wirraway-1 to be drilled in early April 2007 and the follow on development well, Growler-2, on the 2006 Growler-1 oil discovery.

Kopcheff said that exploration success at Wirraway-1 will be of great significance because it will further confirm the importance of the Growler oil discovery and the presence of a new oil production province in the northwest Cooper/Eromanga Basin. He added that, of the four wells that have been drilled in the Cooper Basin of South Australia and southwest Queensland over the last 3 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.

Kopcheff said that the Jingemia-11 oil development well in the North Perth Basin has been successfully drilled. The company expects the well to increase gross oil production from the Jingemia Oil Field from 3,200 to 5,000 barrels oil per day.

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 in the second half 2007.

Further exploration and development success in the forthcoming Cooper Basin and 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 oil and gas net revenue and net recoverable oil reserves.