Copy of Announcement from VPE 5/3/2002 regarding EkhoReport on...

Copy of Announcement from VPE 5/3/2002 regarding Ekho



Report on Ekho-1 Product`n Testing Status Pipeline/Ekho Pros

Document date: Tue 05 Mar 2002 Published: Tue 05 Mar 2002 15:49:35
Document No: 132378 Document part: A
Market Flag: N
Classification: Progress Report
VICTORIA PETROLEUM NL 2002-03-05 ASX-SIGNAL-G

HOMEX - Adelaide

+++++++++++++++++++++++++
Victoria petroleum NL advises that Tri-Valley Oil and Gas Co issued a
press release on February 28, 2002 advising the commencement of
preparations to flow test and hydraulically fracture the EKHO-1 well.

The Tri-Valley Oil & Gas Co press release of February 28, 2002
follows:

QUOTE:

"Tri-Valley Oil & Gas Co (OTCBB: TRIL) will begin flowing its Ekho
No 1 deep well to prepare it for hydraulic fracturing according to
Company officials. The program is significant because it is believed
to be the first time a well of this depth has been "frac-ed" in
California.

Tri-Valley drilled the Ekho No 1 to 19,085 feet in only 86 days in
2000 and found abundant oil and gas locked in dense, tight formations
unable to flow commercially without stimulating the reservoirs. The
Company proposed a three-stage flow/frac program to its partners who
were unable or unwilling to bear the cost at the time and most
dropped out of the project.

While looking for replacement partners, Tri-Valley began a worldwide
research of other deep, high temperature, high-pressure wells with
tight formations that had been successfully stimulated to produce
commercially. Over a year and a half it assembled a group of experts
whose specialties blended to encompass the features and conditions of
the Ekho No 1 and charged them with designing a program to complete
the well. After generating and evaluating a broad array of data, the
group submitted a program not unlike the original three-stage
flow/frac program but with very detailed calculations drawn from
actual successes to back it up.

According to log and core analysis, the Ekho No 1 contains four
separate zones with over 1,000 total feet saturated with 48 gravity
oil and 1,460 Btu natural gas with no contaminants or water.
Independent estimates project approximately 130 million barrels of
oil and 165 billion cubic feet of gas in place in a 360-acre
producing unit. Tri-Valley believes a successful frac program could
stimulate the well to recover on the order of 12.5% or about 16
million barrels of oil and 20 billion cubic feet of associated gas.

Tri-Valley is initiating a capital formation campaign that will
include completing the Ekho No 1 and will begin flowing the well
next week to prepare the reservoir to be ready by May for the initial
phase of the frac program at which time it anticipates funding to be
available to initiate completion. The Company anticipates costs in
excess of $3 million but notes it is possible for new partners to
acquire up to 75% of a drilled well for about 25% of the completed
well cost due to former partners dropping out earlier.

"We continue to believe the Ekho Project represents one of the
largest onshore oil and gas potentials in North America. While
natural fractures in the reservoir could have yielded instant
success, we believe hydraulic fracturing will open up the entire
project as no longer dependent on the drill bit finding natural
fractures. It's still frontier work, but sorely needed in California,
which imports 55% of its oil and 87% of its natural gas," said F Lynn
Blystone, Tri-Valley Oil & Gas Co chief executive officer.

Headquartered in Bakersfield, California, Tri-Valley Oil & Gas Co is
a wholly owned subsidiary of Tri-Valley Corporation, which is
publicly traded under the symbol "TRIL.OB". The Ekho No 1 is located
approximately 45 miles northwest of Bakersfield. More information can
be obtained on the Company's website at www.tri-valleycorp.com or by
calling toll-free at 1 800 579 9314.

END OF QUOTE

The fracturing and testing results of EKHO-1 will be of great
significance to Victoria Petroleum NL's interest in the Pipeline
Prospect contained within the much larger Ekho Prospect, with
Victoria Petroleum holding leases within 1.6 kilometres of the
EKHO-1 drillsite.

The Pipeline Prospect contained within the EKHO Prospect is
considered by Victoria Petroleum NL to have a potential reserve of up
to 2.1 trillion cubic feet of gas and 346 million barrels oil.

The EKHO-1 production testing program provides an effectively free
evaluation of the potential of the Pipeline Prospect in which
Victoria Petroleum NL currently has an estimated nett 16% leasehold
interest, subject to renewals, extensions and ongoing lease
acquisitions in the future in the normal course of business. The
renewal of the Company's leasehold interests in California as and
when they are due for renewal are the subject of negotiation with the
respective landowners and renewal of leases is not guaranteed or
automatic.

Confidence in the ability of modern drilling and completion
techniques to produce commercial oil and gas flow rates to surface
from deep oil and gas sands in the Pipeline/EKHO Prospect has been
provided by the successful completion at the adjacent Berkley East
Lost Hills No 1 well. The ability to complete the same sands in the
EKHO-1 well will be provided by the fracturing and production testing
results of the EKHO-1, commencing May 2002.

J Kopcheff
MANAGING DIRECTOR

For information on Victoria Petroleum NL drilling activities visit
our website at www.vicpet.com.au