Scallop-1 Well Found to be Non-Commercial

Woodside Petroleum Ltd. reports that the Scallop-1 located in the Gippsland Basin exploration well was plugged and abandoned and the semisubmersible, Sedco 702, has moved off location.

Since the last report, wireline logs were run and evaluated confirming the presence of a gross gas column of 35 meters in the primary target and a number of thin oil zones totaling an additional 10 meters of gross oil pay. As the resulting volumes are insufficient to support commercial production, it was decided to plug and abandon the well.

Woodside's interest in Vic/RL2 is 30%. Other participants are Esso Australia Resources Pty Ltd (Operator) (25%), BHP Billiton Petroleum Pty Ltd (25%), Santos Offshore Pty Ltd (20%).