Partnership Interests in Vic/P45 Permit to be Re-assigned

Moby Oil & Gas says it has received notice from Apache Energy that Apache does not want to participate in the drilling of a second well as pursuant to the Vic/P45 farmin agreement between Apache Northwest Pty Ltd, Exoil Limited and Moby Oil & Gas. Apache also wishes to reassign its 66.67% interest in the permit to Moby and Exoil with an effective date of May 15, 2008.

The commitments for Permit Vic/P45, as they presently stand, require a well to be drilled within the permit area by May 15, 2009 in the secondary term of the Permit, which is due to commence on May 16, 2008. At present, the permittees have until May 15, 2008 to determine whether they will enter into the fourth permit year (secondary term) or relinquish the Permit.

The joint venturers anticipate making representations to the Designated Authority to vary the year-4 permit commitment. If Moby and its joint venturer, Exoil, decide to enter into the fourth permit year they will take steps to devise a strategy to source funds for the next well.

Vic/P45 permit is located in the Gippsland Basin offshore Australia.