Petsec Energy Doubles US Reserves

Petsec Energy has completed the acquisition announced on October 11th, of interests in seven onshore and offshore Louisiana gas fields.

Six of the gas fields are in production, with the remaining field expected to commence production in December. The acquisition of 36.2 Bcfe of gas of independently assessed 2P reserves has more than doubled reserves and production from Petsec Energy's existing USA fields in the Gulf of Mexico.

The net amount paid by Petsec Energy at completion was US$103.8 million, being total consideration of US$110 million (as previously announced) less adjustments for the net value of production and costs during the period from 1 October 2007 to closing. No pre-emptive rights were exercised in respect of any of the assets to be acquired. The entire purchase price was met by the Company's debt facilities.

A teleconference providing further details on the acquisition will be held at 11am on Thursday 15th November 2007, with a presentation released prior to the call. Teleconference details will be provided early next week.