Petsec to Deregister from SEC

Petsec Energy Ltd intends to terminate the registration of its American Depositary Receipts (ADRs) and its duty to file reports under the Securities Exchange Act of 1934 in the United States.

On March 27, 2007, the Securities and Exchange Commission (SEC) issued final rules that will make it easier for foreign companies, such as Petsec, to terminate their SEC registration. These rules will come into effect on June 4 2007. Petsec will seek to deregister from the SEC when those rules become effective.

Petsec has been an SEC registered company since 1996 when it first initiated an ADR program. Petsec's ADRs (1 ADR represents 5 underlying Petsec shares) currently trade on the Pink Sheets under the code PSJEY.PK and over the past year have contributed around 3% of overall turnover in Petsec stock.

Deregistration is not expected to have any impact on the trading of Petsec's ADRs in the USA but will substantially reduce administrative burdens and costs associated with the US compliance regime.

Petsec will continue to maintain good control and governance frameworks in accordance with the requirements of the Australian Stock Exchange's Principles of Good Governance and Best Practice Guidelines.