VICPET INCREASES INTEREST IN GROWLER AND SNATCHER OIL FIELDS...

VICPET INCREASES INTEREST IN GROWLER AND SNATCHER OIL FIELDS AND
PEL 104/ PEL 111/ PRL 15, WESTERN MARGIN OIL PROJECT, EROMANGA/
COOPER BASIN, S.A.
Victoria Petroleum N.L. (Vicpet) is very pleased to announce that it has increased its
interest from 40% to 60% in the highly prospective Western Margin Oil Project permits
PEL 104/ PEL 111/ PRL 15 containing the Growler and Snatcher oil fields, by the
acquisition of Permian Oil Pty Ltd (Permian) from QGC, a BG Group business, through an
Asset Swap Agreement.
The immediate impact of the acquisition of Permian on Vicpet will be a 50% increase in
Vicpet’s share of the oil reserves in the Growler and Snatcher oil fields currently estimated
at a cumulative gross 3.5 million barrels of recoverable oil (P10).
Vicpet will also see an estimated 284% increase in operating net cash flow from oil sales
from $5.6 million in FY 2009 to a projected estimated $15.9 million in FY 2010.
The increased cash flow to Vicpet, as well as being used for an aggressive exploration,
appraisal and development drilling program in these prospective Western Margin Oil
Project permits will also provide cash flow for the ongoing development of Vicpet’s
average 25% interest in the Surat Basin coal seam gas permits ATP 574P and PL 171
with their potential in place Coal Seam Gas reserves of up to 2,500PJ.
The terms of the Asset Swap Agreement require Vicpet to transfer to QGC a 3.75%
interest in the Walloon Coal Measures of ATP 574P and varying interests in the underlying
sections of the tenement in exchange for 100% of the shares of Permian.
Following this asset swap Vicpet will retain its original 30% interest in the Walloon Coal
Measures of ATP 574P and underlying sequence. The Walloon Coal measures have the
potential to contain up to 1,500PJ of Coal Seam Gas (CSG) in place in ATP 574P.
Victoria Petroleum Managing director John Kopcheff said;
“The Permian acquisition is a very positive addition for Vicpet as it increases Vicpet’s net
reserves and operating cash flow and increases Vicpet’s future potential upside to further
exploration, appraisal and development success’s in the Western Margin Oil Project
permits.