its starting to happen, page-2

its starting to happen news out August 23, 2006
ASX Announcement:
COMPANY UPDATE
Impress Energy Limited provides the following update on its exploration and
production activities in its permits in the Cooper basin of South Australia.
1. PEL 115 (Impress Energy 40%)
The fracture stimulation work in the Mirage Field using contractor BJ Services
commenced on the 6th August and the stimulations of Mirage-3 and Mirage-4 were
successfully completed by the 10th August without any operational difficulties and the
equipment was released. During the operations fracture fluids of up to 650 barrels were
injected into the reservoir in each well. Subsequently a coiled tubing unit was
mobilised to the field area and this unit was used to recover some of these fluids using
nitrogen to lift the fluid from the wells. A shortage of nitrogen and the overall cost of
the coiled tubing unit led the Joint Venture to decide to terminate this operation after
recovery of approximately 300 barrels of fluid from each well.
The remaining fluids will be lifted using the pumps which will be installed using a work
over rig over the next two weeks. The wells will then be brought into production
subject to final regulatory approvals at which time the effectiveness of the stimulation
process will be able to be fully assessed. However, the initial rates of recovery of the
fracture fluids are encouraging in terms of the oil production which will be achievable.
Oil production from each well will be sent via flowline to the central production facility
at Mirage-1.
The general shortage of personnel and equipment in the Cooper Basin has meant that
the program has taken about one month longer than originally estimated by the Operator
Victoria Petroleum.
2. PEL 104 (Impress Energy - 40%)
Impress has been advised by the Operator that Hunt Rig 3 is in the process of being
mobilised to the Growler-1 location and this well, which is targeting the Eromanga
Basin section should spud, subject to rig inspection and certification by the regulatory
authorities, on the 1st September.
Growler-1 will be the first well drilled by the Joint Venture in this permit which covers
the western flank of the productive Patchawarra Trough of the Cooper Basin. Growler-
1 will test a four way dip closure on trend from the existing Jurassic oil fields Charo and
Callabonna operated by Santos Limited and is expected to take 15 days to reach the
programmed total depth of 2079m. The principal objectives of the well are the Namur,
Hutton and Poolawanna Sandstones.

Growler-1 is located 16 kilometres west of the Callabonna Field and will be an
important test of this under-explored area of the Cooper Basin. The prospect is located
in an analogous geological position with respect to the Permian source kitchen as the
Christies and Sellicks Fields operated by Beach Petroleum some 40 kilometres to the
south. The well is targeting most likely reserves of 1 million barrels of oil at each
reservoir objective.
Daily reports on the well’s progress will be provided to the market by the Operator,
Victoria Petroleum
Commenting on the above Impress’ Chief Executive Officer Eddy Buckovic said
“Impress is pleased that progress to increase production at the Mirage Field is being
made despite some delays caused by the worldwide shortage of oil field equipment and
personnel. Once the wells are placed on full production an assessment of the fracture
stimulation of the complex Murta reservoir will be made which could lead to additional
stimulation of other wells in the greater Mirage area.
We are also pleased that the drilling program in our western permits will soon
commence with Growler-1. There are a number of follow up prospects in the vicinity of
the well which are candidates for drilling in the event of encouragement at Growler-1”.