c o p y o f a n n o u c e m e n t

Copy of ann.

Also check out the PEL255 Otway basin ann from the 20th. This got media coverage in SA.


OIL RECOVERED ON PRODUCTION TESTING FROM WEST FLORENCE-1,
WEST FLORENCE PROJECT AREA, COLORADO, USA
Victoria Petroleum N.L. has been advised by the operator Mountain Petroleum Corporation that the drilling rig
on location at West Florence-1 has carried out production testing operations over the Codell Sand and Lower
Niobrara Fort Hays equivalent following fracture stimulation of these oil bearing zones. During the swabbing
operations on this zone, increasing oil has been recovered on successive swabbing runs with 25 barrels of oil
recovered from the well over the 12 hour swabbing period with associated gas flow.
Following the success of the fracture stimulation operations above, fracture stimulation of the mid Niobrara oil
bearing zone will commence on 24th August 2007 as is the usual practice to determine the oil flow rate that
this zone can produce and contribute to the overall production of the well on pump.
The remaining third secondary target, the Pierre Shale, also yielded good oil shows during drilling with
extensive fracturing and will be assessed at a later date with a well specifically targeted as a production test.
The adjacent oil producing wells of the Florence Oil Field required fracture stimulation to produce commercial
quantities of oil.
The total gross leasehold of 25,000 acres provides the participants in the West Florence project with a
significant leasehold position.
West Florence-1 is the first well to be drilling in the West Florence Oil and Gas Project and its associated
leasehold of 12,000 acres located in the Florence sub basin of the Denver basin. The leasehold is
approximately 160 kilometres south of Denver, Colorado, USA. The project area is to the west of the
Florence Oil Field which produced approximately 15 million barrels of oil from fractured shales of the Pierre
Formation in the 1940’s.
The petroleum potential resource for the West Florence Project is estimated to be in the order of 100 – 200
billion cubic feet of recoverable gas in the sands of the Muddy J and Dakota Formation and additionally
around 15 million barrels of recoverable oil cumulatively from the Pierre, Niobrara and Codell formations, if oil
and gas are present.
Commenting on the recovery of oil and the production testing results observed so far, Victoria Petroleum
managing director John Kopcheff said:
“Victoria Petroleum is pleased to see that the fracture stimulation of the Codell and lower Niobrara zones has
resulted in the production of oil and gas to surface in what appear to be commercial quantities based on
comparison with the adjacent Florence Oil and Gas Field”
“Victoria Petroleum looks forward to the production testing results from the forthcoming fracture stimulation of
the mid Niobrara zone in the West Florence-1 to see how much additional oil can be produced from this zone
and so final oil and gas production rates for the well can be determined”
VICTORIA PETROLEUM N.L. ABN 50 008 942 827
Incorporated in Western Australia
2
“The first up success with West Florence-1 from these zones alone augurs well for the interpreted presence
of a large oil and gas development opportunity over the large acreage position held by the project.”
“We envisage a scenario based on adjacent historical production of numerous modest rate producing oil
wells providing cumulative significant oil production. Further testing and drilling is required to establish this
scenario.”
The participants in the drilling of West Florence-1 and the West Florence Oil and Gas Project and their
respective interests through their wholly owned subsidiaries are as follows;
Mountain Petroleum Corporation. (Operator) 25%
Victoria Petroleum N.L. (ASX code: VPE) 25%
Fall River Resources Limited (ASX code: FRV ;TSX.V code FRR) 15%
Adelaide Energy Limited 15%
North American Oil Gas Energy Pty Ltd 5%
Private American Interest 15%