Victoria Petroleum N.L. (VPE) advises that Victoria Oil Exploration (1977) Pty Ltd (a wholly owned subsidiary of Victoria Petroleum N.L.) has been notified by Primary Industries and Resources SA (PIRSA) that it has renewed PEL 88 for a period of 5 years as of 17 May 2008, and approved the assignment of permit interests.

The renewal involves a work program of geological and geophysical studies and the drilling, in permit year five, of one well.

Victoria Oil Exploration (1977) Pty Ltd (VicPet) (a wholly owned subsidiary of Victoria Petroleum NL (VPE) and Traditional Oil Exploration Pty Ltd (Traditional) (a wholly owned subsidiary of Enterprise Energy Ltd (EPE)) had reached agreement with the other PEL 88 licence holders, being Cooper Energy Limited (COE), Sundance Energy Australia Limited (SEA) and Liberty Petroleum Corporation (Liberty), to assign their permit interests in PEL 88, with effect from the renewal of the permit.

PIRSA has advised that these assignments have been approved, so that the participating interests in PEL 88 will now be as follows:

Victoria Petroleum N.L. 50% (Operator) Enterprise Energy Ltd 50%

Vicpet’s Managing Director, John Kopcheff, commenting on the renewal and acquisition of this increased interest in PEL 88, said, “The acquisition of the increased interest in PEL 88 is particularly strategic for the Company, given its position as one of the largest acreage holders in the Cooper/Eromanga Basin of South Australia and Southwest Queensland and the proximity of PEL 88 to oil fields in which Vicpet has an interest.”

Of particular significance is the recent Vicpet Cuisinier oil discovery in the immediately adjacent permit to the east, the ATP 752P Barta Block. The Cuisinier oil discovery, made by co-venturers Santos, Avery and Bow Energy, lies to the west of the Cook Oil Field and provides encouragement that the western flank of the Cooper Basin, including PEL 88, has untapped potential for further oil discoveries.

This potential will be further investigated shortly with the drilling of Hudson-1 in ATP 752P, on trend from the Cuisinier-1 oil discovery in early July 2008 to be followed by the proposed development drilling in August 2008 in the James Oil Field production licence (encompassed by PEL 88), by the Santos led Joint Venture”.

“As an integral part of Vicpet’s Australian “two core area” strategy of oil in the Cooper Basin and coal seam gas in the Queensland Surat Basin, I can also report that, preparations are also underway to commence drilling in the Western Margin Jurassic Oil Project in PEL 104 in the Cooper/Eromanga Basin of South Australia as well as the recommencement of drilling in the Don Juan coal seam gas project.”

Tags: Primary Industries and Resources SA, Victoria Petroleum N.L.