Victoria Petroleum Planning 10 Cooper Basin Wells in Next 6 Months

Victoria Petroleum has plans to drill ten wells over the next six months in its core South Australia and Queensland Cooper Basin permits.

Starting in early December 2006, the first of these the ten wells, Wirraway-1, will commence drilling in South Australian permit PEL 104, four kilometers from the recent Growler-1 oil discovery, testing the Wirraway Prospect target of up to 8 million barrels of oil, if oil is present.

Following the drilling of Wirraway-1, considered to have a good chance of exploration success given its proximity to the Growler-1 oil discovery, the drilling rig will then move immediately to the adjoining northern permit PEL 111 to drill Ascender-1 on the Ascender Prospect with its potential for 9 million barrels of oil, if oil is present.

Also during December 2006, the Tomcat Prospect will be drilled in your prospective South Australia Cooper Basin permit PEL 115 by Santos on behalf of Victoria Petroleum NL and its partners. Tomcat-1 will be following up an oil flow of 780 barrels of oil per day from a Santos well drilled in 1993. Should Tomcat-1 well prove that the oil pool discovered by the Santos well extends into PEL 115, this will be a significant outcome for your Company.

While the above exploration drilling is taking place in December in the South Australia portion of the Cooper Basin, across the border in Queensland, your Company will also be participating in the drilling of three wells in ATP 752P.

These wells are Marracoonda-2, Gamma-1 and Nora-1, with potential recoverable oil reserves, if oil is present, in the range of one to six million barrels as interpreted by the operator Bow Energy.

The timing of the drilling schedule of these wells plus four others to follow in the next six months in the Cooper Basin is shown on the drilling schedule along with your Company’s other drilling activity.

The anticipated exploration success in this forthcoming Cooper Basin drilling program will further enhance the Company’s position as a major oil and gas explorer and producer in the Cooper Basin of South Australia and Queensland, a strategy that has been actively pursued and implemented by the Directors of your Company.