Petsec Spuds Acapulco Prospect

Petsec Energy reports that the CLUF #28-1 well has reached a measured depth of 2,974 meters (9,815 feet) and is drilling ahead.

The CL&F #28-1 well (Acapulco Prospect) is the first in a three well drilling program in the Hollywood AVO Trend Prospects.

The Hollywood AVO Trend Prospects are located approximately 110 kilometers (70 miles) southwest of New Orleans in Terrebonne Parish, Louisiana. Petsec is a non-operator in the three well program that will target gross reserves of 58 bcf of gas and 1.75 million barrels of oil.

Details of the well are as follows:

-- Well Name: CL&F #28-1 (Acapulco Prospect)
-- Proposed Total Depth: 4,378 meters (14,360 feet) measured depth and 4,244 meters (13,920 feet) true vertical depth
-- Date of Commencement: June 17, 2007
-- Estimated Time to Drill: 45 days
-- Petsec working interest: 23.53% BCP, 20.00% ACP
-- Petsec net revenue interest: 13.25% before payout, 11.92% after payout