5 December 2005 Announcements Officer Australian Stock Exchange Limited Sydney NSW Production testing to proceed on several potential gas zones Plymire Road 4-14 Well Update - Northern Sacramento Gas Project The Plymire Road 4-14 ceased drilling at a total depth of 5323 feet upon reaching the Guinda Formation target. Although the Guinda Formation was water bearing, the well did encounter hydrocarbon shows in Cretaceous sediments shallower than the Guinda target. This intersection appears to consist of a broad zone of gas in intercalated shales and sandstones. This discovery is in addition to the previously announced gas indications in the Princeton Gorge Formation. Based on discussions with consultants and advisors, Pacrim Energy has decided to set casing down to this new Cretaceous zone and to proceed with flow testing of this and the Princeton Gorge Formation higher up the hole. A service rig is to be contracted to test the potential hydrocarbon bearing zones at Plymire 4-14 as soon as possible, thus allowing the drilling rig to continue drilling operations. The drilling rig is being relocated to the third well site, Red Bluff, in line with the Company’s 2005 exploration programme. The Red Bluff Ranch (Home Ranch) site has been gravelled for weather proofing and the Red Bluff Ranch 1-16 well is expected to be spudded Monday 5 December, California time. Comments At this stage Plymire 4-14 has encountered hydrocarbons in two separate formations which is very encouraging. The significance of the hydrocarbon indications will not be known until testing operations are carried out utilising a service rig. The gas indications in a new Cretaceous zone are particularly interesting. If testing proves successful, this could open a new focus of exploration in the general area where Pacrim Energy has a significant acreage position with over 50,000 acres under lease. However, the Company’s board understands the risk of confirming gas on this new zone is significantly higher than the Princeton Gorge Formation as there is limited information on the new zone. Pacrim Energy has a 100% working interest in the Red Bluff Ranch 1-16 well, located within a major acreage position in this area of the Northern Sacramento Basin. Rodney D Foster Managing Director BSc, Geol MAusIMM The geological information contained in this announcement has been compiled from information provided and reviewed by Robert Rosenthal a qualified geologist and consultant to Pacrim Energy Limited, with 28 years experience in petroleum industry. Mr Rosenthal has consented to the inclusion of the geological information in this announcement in the form and context in which it appears.
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