Victoria Petroleum to Abandon Lancer-1

Victoria Petroleum says that Lancer-1, following the running of wire line logs and sidewall cores where a Permian oil show was observed, has been plugged and abandoned with the drilling rig released.

The drilling rig is now being moved 220 kilometers to the northwest to the Ascender-1 drill site in PEL 111 where it is anticipated drilling will commence in approximately 10 days time. Ascender-1 is the next well in the Cooper Basin Western Margin Oil Project with the aim of extending from the Growler-Wirraway Oil Field, the Jurassic oil fairway 22 kilometers to the north.

Commenting on the drilling results from Lancer-1, Victoria Petroleum NL’s managing director john Kopcheff said:

"While the oil show observed In the Permian is encouraging, it is considered noncommercial and the decision has been made to cease operations at Lancer-1 and move the rig straight away to the Ascender-1 drill site."

"We look forward to the start of drilling operations at Ascender-1 in around ten days time."

The participants in the drilling of Lancer-1 and PEL 115 and their respective interests are as follows;

Victoria Petroleum N.L (Operator)        40%
Impress Energy Ltd                       40%
Roma Petroleum N.L.                      20%