drilling update

sidetracked another 10 days

Dear Sir/Madam
VENTURA SOUTH FLANK WELL DRILLING UPDATE
As at 27 May 2007 (Pacific Coast, USA Time), the South Flank No.1 exploration well had reached a depth of 11,000
feet. Electric logs were run and it was determined that the well had not intersected the primary fault trap. A
decision has been made to sidetrack the well. The sidetrack well is expected to hit total depth in the next ten
days.
As part of the original well plan it was expected that a sidetrack well may have been necessary, and the well was
designed and budgeted for such a contingency.
The South Flank No.1 exploration well is located in Ventura County, California, approximately one mile south of the
Ventura Avenue field which has produced over 900 million barrels of oil. This well is a follow up to a well which
was drilled in 1935.
The South Flank No.1 well is one of the main exploration assets held by Solimar Energy Pty Ltd. Livingstone
Petroleum Limited announced to the ASX on 10 May 2007 that it had entered into an agreement to acquire
Solimar.
For and on behalf of the Board.