Vicpet: Santos Completes Wilpinnie-4 Testing

Victoria Petroleum N.L. said that cased hole production testing operations have been completed at Wilpinnie-4 by the operator Santos Limited and the work over rig released.

During the past 14 days, the production test of the interpreted oil bearing mid Jurassic Namur sandstone oil zone over the gross 9.8-meter interval from 1,482.5-1,492.3 meters resulted in the recovery of 16 barrels of oil and 561 barrels of drilling mud filtrate and formation water.

Preliminary analysis of the production test results indicate that the 24 barrels of oil and no water recovered on open hole drill stem test may have been flush oil production from a residual oil column. Based on this analysis it is concluded that Wilpinnie-4 will not be a commercial oil well.

It is also considered most likely based on the results of Wilpinnie-4 production testing that the up dip Tomcat Prospect would encounter a similar possible residual oil column and thus will not be an immediate drilling target for the PEL 115 Joint Venture in the northern part of PEL 115.

Exploration drilling focus in PEL 115 will now move to the southern part of PEL 115 with the drilling of the Lancer and Fury prospects to commence in 2-3 weeks time.

Commenting on the cased hole production tests of Wilpinnie-4, John Kopcheff, managing director of Victoria Petroleum NL said:

"Victoria Petroleum is disappointed that a commercial oil flow was not able to be obtained from the cased hole testing operations given the very positive open hole test oil recovery."

"The possibility that the oil encountered is residual confirms our belief that significant quantities of oil have migrated up dip through the northern part of the permit. Although the Tomcat Prospect is now not an immediate drilling target, we will continue to search for prospects to drill in the northern part of PEL 115."

"The exploration drilling in PEL 115 will now continue with the planned drilling of the Lancer and Fury prospects some 6 kilometres north of the oil producing Mirage Oil Field. The drilling rig is anticipated to be on location in late August 2007"

The interests in PEL 115 through the various wholly owned subsidiaries are:

Victoria Petroleum NL 		40% (operator)
Impress Energy NL 		40%
Roma Petroleum NL 		20%