PETSEC ENERGY LTD
ACN 000 602 700
QUARTERLY REPORT
FOR THE PERIOD ENDED 31 MARCH 2004
HIGHLIGHTS
Petsec generated net revenues of $9.1 million for the quarter from oil and gas
production.
Net production for the quarter was 1.26 bcf (billion cubic feet) of gas and 1,142
bbls (barrels) of oil.
Petsec drilled the successful Vermilion 258 #2 well, which was suspended for
future gas production.
Construction of the production facilities at Vermilion 258 is on schedule for
production mid-2004.
Petsec was high bidder on three new leases at the central Gulf of Mexico OCS
lease sale held by the MMS in March 2004.
China drilling programme of two to five wells began in April.
EXPLORATION & DEVELOPMENT PROGRAMME
FOR JUNE 2004 QUARTER
USA
Offshore Louisiana
Gulf of Mexico
Vermilion 258
Construction of platform and facilities is on schedule for installation during the June quarter.
Production from the Vermilion 258 #1 and #2 wells is expected mid-year.
CHINA
Beibu Gulf
Block 22/12
A two to five well programme commenced in April 2004. The 12-7-1 well has been drilled
and the 12-8-3 well has commenced. If the 12-8-3 well is successful Petsec expects the
joint venture will drill the 12-3-4 appraisal well.
Level 13, Gold Fields House, 1 Alfred Street, Sydney NSW 2000, Australia
PO Box R204, Royal Exchange NSW 1225, Australia
Telephone: (61 2) 9247 4605 Facsimile: (61 2) 9251 2410
Company Information is available on: www.petsec.com.au
Petsec Energy Ltd
Page 2
OPERATIONS
USA
Offshore Louisiana
Gulf of Mexico
West Cameron 343
Petsec: 100% - 75% working interest (82.33% - 61.75% net revenue interest)
West Cameron 352
Petsec: 75% working interest (57.375% net revenue interest bpo, 46.125% apo.)
Operator: Petsec
Production net to Petsec was 1.26 bcf of gas and 1,101 barrels of oil in the quarter.
Vermilion 244, 246, 257, 258, 259
Petsec: 100% Working Interest (83.3% Net Revenue Interest)
Petsec drilled the Vermilion 258 #2 well to a measured depth of 2,385 metres (7,822 feet) in
January 2004. The well encountered three hydrocarbon bearing sands having an estimated
13 metres (42 feet) of net gas pay.
The #2 followed immediately after the successful #1 well, drilled in December 2003, which
encountered six hydrocarbon bearing sands with an estimated 24 metres (78 feet) of net gas
pay.
Both wells were suspended for future gas production.
In January, Petsec commenced the construction of a production platform, facilities and
pipeline with initial capacity of 45 million cubic feet of gas per day at a cost of US$7.8 million.
The platform is on site and production from both wells is expected to commence mid-year at
an initial production rate of 15 to 25 million cubic feet of gas per day.
Petsec was awarded the Vermilion 244 and 259 leases by the Mineral Management Service
following successful bids at the March 2004 Central Gulf of Mexico OCS lease sale. The
leases are adjacent and to the west of Vermilion 258. Petsec now holds five contiguous
leases centred on Vermilion 258.
Petsec expects that two or more wells will be drilled on the leases in the second half of the
year.
Ship Shoal 184 and 191
Petsec: 7% Overriding Royalty Interest
Production for the March quarter was 11 mmcf of gas and 41 bbls of oil. Two wells remain
shut-in awaiting hook-up to an oil pipeline.
Main Pass 19
Petsec: 55% working interest
Operator: Petsec
Petsec made the high bid on the Main Pass 19 lease at the March 2004 Central Gulf of
Mexico OCS lease sale held by the Mineral Management Service. The lease is adjacent to
the Main Pass 104 lease which Petsec had held previously and on which Petsec discovered,
developed and produced oil and gas.
Petsec expects the MMS to award the lease during the June quarter.
Main Pass 89; West Cameron 462, 480; High Island 33
No activity during the quarter.
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