PSA (ASX) some questions answered part 2

Hi All,

Spoke to the company this morning both here and in the United States and can pass on the following:

At this stage they believe thay have enough cash to meet their program commitments based on cash projections and the delays now in the drilling of Vermilion East and possibly Main Pass. Drilling costs are discretionary expenditure and so can be moved back if necessary to match cash flow. So miningnut no liklihood of a capital raising at this point.

Profit projections are dependent on prices received and production levels but feeling is they will not be too far below last years result and if gas prices spike then who knows could be even better than currently forecasted. So looks like no drastic reduction in profit levels.

Vermilion East will not be drilled in September as originally planned. Quarterly said Q4 and that could mean November or December. Company needs a jack up rig which has the capability of sitting up over the Vermilion platform so they can produce and drill at the same time and bring any successful wells on stream while drilling the next wells. This rig is now not available until end Novemebr so team in the US is looking at other options if funds are available to finance an earlier drill. But rig rates are moving higher inthe GOM

Main Pass target estimates in the quarterly (10-15 bcf) are net to Petsec's 55% interest so field size is in the range of 20-30 bcf which is a good size for the price they paid.

G1 well commenced production overnight but will take a week to give stabilised production levels and regurgitate all the stuff they put into the well for the completion. So news early next week. First sand to be produced is the bottom most Forrest Oil sand which should be at reasonable pressure though company was unable to pressure test it when drilling. Could flow at rates higher than G2 but need to wait and see.

At West Cameron daily production rate in the quarterly refered to 4 of the 5 producing wells. Fifth well will go back into production this week so West Cameron rates should be marginally higher when that happens. Each well at West Cameron has at least one more sand if not more to produce so could be a solid producer through to the end of 2005.

Think that is about it but if I think of anything else I will post. Petsec with two producing fields (two and a half if youinclude Ship Shoal) and two to be proved up in the next 6-9 months is really well placed to benefit form the energy crisis and the high gas rates likely to obtain in the US going forward.