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2 June 2008

Drilling Report No. 18 East Wing ST-1 Well at 0600 hours
PEP 168 Otway Basin Victoria

Essential Petroleum Resources Limited (ASX: EPR) advises that at 0600 hours, the East Wing ST-1 operation is running casing to a measured depth of 2295 mKB. The planned wireline pressure testing program could not be completed due to poor hole conditions. The hole will now be secured with steel casing to preserve the gas saturated zone of interest.
Wireline logging indicates the presence of hydrocarbon over a gross interval of 2197-2243.5m. This gross interval includes an upper zone in the Flaxman Formation of uncertain reservoir quality, and a net zone of 7m of moveable gas in good Waarre Formation reservoir at 2216.5m. EPR believes that a lower zone of elevated log response is possibly moveable hydrocarbon including condensate liquid above a water contact at 2243.5m.
A program of perforation and production testing will be carried out at the earliest opportunity.
Essential Petroleum owns 100% of the PEP 168 permit.
John Remfry
Managing Director