Company Announcements
Australian Stock Exchange Limited 28th.November2007.

Vicpet Acquires Interest in Onshore Texas Exploration Gas Prospect

Victoria Petroleum N.L. (”Vicpet”) (ASX:VPE) is pleased to announce the completion of the acquisition of a 20% working interest in the El Fatso gas and condensate exploration project (”El Fatso Prospect”), located in the onshore Gulf Coast, Wharton County, Texas.

El Fatso Project The El Fatso Prospect is located in Wharton County, approximately 120km southwest of Houston. The lease area lies directly to the south of the Phase Four, Shanghai and El Campo gas fields which have produced more than 120 billion cubic feet (”BCF”) of gas and 9 million barrels of condensate (mmbc) from good quality Eocene aged Yegua sands located in a fault block up dip and 2 kms to the north of the El Fatso Prospect.

The lease holder and Operator of the project is a private US company, Texas Standard Oil Operating Company (the Operator). The El Fatso Prospect was defined from good to excellent quality 3D seismic shot in 1995 which has recently been reprocessed and re-mapped. The survey was originally shot to define the western edge of the neighbouring El Campo field which lies to the north and immediately adjacent to the El Fatso Project.

The exploration targets in the El Fatso Prospect display excellent seismic amplitude and Amplitude Variation with Offset (”AVO”) responses. The use of 3D seismic has improved significantly the rate of drilling success to approximately 70% for Yegua fairway targets which in the past have been discovered and developed using 2D seismic only.

The El Fatso Prospect will be drilled by the Schoenfield #1 well which will target three stacked seismic amplitude and AVO defined prospects in a lower Yegua sand fairway between 11,000 feet and 13,000 feet Measured Depth (”MD”). The targets, if hydrocarbon bearing, are expected to contain gas and condensate in encased sand bodies laid down as deltaic fans or turbiditic channels.

The Operator has estimated unrisked potential recoverable resource of up to 72 BCF and 6.5mmbc (P10) from the three separate sands, if gas is present, to be tested with a single deviated well. The unrisked P90 potential resource estimate is 19.7 BCF and the P50 potential resource is 30 BCF.

The target sands are gas productive in neighbouring fields to the north of the prospect. The drilling of the well is expected to commence in late December and it is anticipated to take 30 days to reach the proposed total depth of 13,700 feet MD.

The Participation Agreement with Texas Standard Oil & Gas, LP, Vicpet is to pay its proportionate share of leasing and other back costs to earn its initial working interest (WI) of 20% (NRI 14.6% - BCP) and is committed to the drilling of the first well. On a success basis, the Operator is entitled to a 25% back-in at casing point, thereafter reducing Vicpet’s
BPO 20% working interest to a15% WI (NRI 10.95% - After Casing Point ¬ACP) for casing, completion and all subsequent operations. Vicpet retains the option to participate in subsequent wells in the El Fatso Prospect and Area of Mutual Interest at a 15% working interest level.

Comment by Managing Director

Victoria Petroleum N.L. Managing Director, John Kopcheff, commenting on the participation of Vicpet in the drilling of the El Fatso Prospect stated: “Participation in El Fatso provides Vicpet with the opportunity to participate in the imminent drilling of an exciting exploration well which offers the potential for excellent productivity and attractive reserves potential on an attractive risk return basis.”

“The presence of seismic attributes which are positive indicators for the presence of gas in the target horizons is particularly encouraging given the close proximity of the producing El Campo gas field, although the target horizons are yet to be proved by the drill.” “Vicpet is looking with the drilling of El Fatso to build on its recent exploration success in the Margarita Gas project onshore Gulf Coast Texas.”

The participants in the drilling of El Fatso are:

Victoria Petroleum NL 20% WI BCP 15% WI ACP Aurora Resources Limited 50% WI BCP 37.5% WI ACP
Private USA Interests 30% WI BCP 47.5% WI ACP

JOHN KOPCHEFF
MANAGING DIRECTOR
VICTORIA PETROLEUM N.L.

This report contains some references to forward looking assumptions, estimates and outcomes. These are uncertain by nature and no assurance can be given by Vicpet that its expectations, estimates and forecast outcomes will be achieved.




	
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