Petsec Energy Limited today announced that the second well in a 2 to 3 well drilling programme at the company’s Mobile Bay leases in the Gulf of Mexico, USA was spud on October 29, 2006.

The drilling programme is being conducted on the Mobile Bay 950, 951 and 873 leases which are located approximately 160 kilometres east of New Orleans and will target a total of 6-10 bcfe of gas net to Petsec (after payout).

Details of the well are as follows:-

Well Name: Mobile Bay 950 #1

Water Depth: 24 metres (78 feet)

Proposed Total Depth: 1,021 metres (3,350 feet) measured depth

Estimated time to drill: 8-10 days

Operator: Royal Exploration Company, Inc

Petsec working interest: 50% before payout (40% after payout)

Petsec net revenue interest: 39.42% before payout (30.53% after payout)