Senex Energy Limited

Victoria says Cooper Basin roads stay closed: Growler road not expected to reopen until June/July 2010 and Snatcher until September 2010. Flood shut-in continues, and FY2010 net production revenue is cut to an estimated $4.7 million. Development drilling is also delayed.

production update

Victoria says roads may reopen in 6 to 8 weeks, starting with Mirage; shut-in continues. Output was 1,560 bopd, a new high, before shut-in. Little Growler pressure depletion after almost 500,000 barrels supports the 5.8m barrel 3P. Century#3 rig to start up to 12 wells once roads reopen.

production update

Impress says Snatcher and Growler will probably stay shut in for at least 6 to 8 more weeks because of flooding. Growler well pressures have rebuilt strongly after almost 500,000 barrels produced, suggesting recovery may exceed earlier expectations.

production update

Victoria agrees to sell its 5% of Jingemia (L14) and 5.013% of EP413 to Norwest for $500,000, now seen as non-core. Jingemia net output was 30 bopd against 545 bopd in the Cooper Basin. Proceeds go to the Western Margin Oil Trend; approval needed by 31 Dec 2010.

asset acquisition disposition

Bow confirms completion of the ATP 574P sale to Victoria: 13m Victoria shares (escrowed to 2 Nov 2010) allotted 1 Feb, plus Victoria's ATP 608P/805P stakes passing to Bow. Bow had already received the $8m cash. Resolves the pending Bow deal, lifting Victoria's ATP 574P interest.

asset acquisition disposition

The Share Purchase Plan closed with $10.3 million raised at 30c, near the $12m target. Together with $26 million cash on hand, it funds up to 30 wells over the next 12 months. Shares are to be allotted 25 January.

capital raising announcement

RBS Morgans will fully underwrite exercise of the 25c options expiring 31 January, about 56.4 million options raising $14.1 million for a 2.75% fee. Funds support up to 30 wells over 12 months, which removes the risk of the options lapsing.

capital raising announcement

Growler 3P reserves are put at 5.8 million barrels against current 2P of 1.8 million. Growler-6 and -7 development wells are due to start end January. Output is about 1,000 bopd, which could reach 1,800 bopd gross by end 1Q 2010. Victoria's 60% depends on shareholder approval of the Permian Oil deal.

resource reserve update

Monitor says logs and sidewall cores confirm light crude oil in the Epsilon and Patchawarra formations at Airacobra-1, TD 2,163 m. No oil-water contact was found. Well cased for flow testing, after earlier Jurassic disappointment.

drilling result

Victoria confirms Airacobra-1 reached 2,163 m, with logs and cores showing light oil with diesel odour in Permian Epsilon (2,016-2,018 m) and Upper Patchawarra (2,117.5-2,119 m). Cased for testing in late January after Fury-1; Victoria keeps 33% free-carried.

drilling result

First oil from the Snatcher-1 and -2 discoveries has started, flowing to a temporary facility, with pumps to follow and stabilised rates announced later. Snatcher-3 goes on production in 1Q 2010. Victoria's 60% via Permian Oil still needs approvals.

production update

Impress says the Snatcher field started production on 16 December, with Snatcher-1 and -2 free-flowing to temporary facilities until pumps are commissioned. Flow rates will be announced later. Production began two days after the delayed 14 December target.

production update

Airacobra-1 spudded in PEL 115 and was at 90 m, planned to reach 2,340 m in 22 days. It targets up to 1.3 million barrels in Jurassic sands next to Santos's Narcoonowie field. Follows the Fury-1 discovery; Victoria's interest is 33%, free-carried. (Text says 'November', apparently meaning December.)

drilling spud

Fury-1 is a new oil field discovery: 17 m gross oil column (1,309–1,326 m) in the Murta, plus a Permian Epsilon oil sand (1,814–1,819 m), the first Permian oil in PEL 115. Cased for production at 1,965 m; testing awaits a workover rig. Resolves the earlier oil shows.

drilling result

Monitor reports Fury-1 oil shows confirmed by logs and side-wall cores: 17 m gross oil column (1,309–1,326 m) in the Murta, plus an oil sand in the Permian Epsilon. Production testing to follow; the rig moves to Airacobra. Partner's version of Victoria's news.

drilling result

Victoria offers a Share Purchase Plan at 30c per share, for $1,200 to $15,000 per eligible holder. Record date 7 December, closing 31 December, allotment 6 January 2010. No total raise size is given. It follows 36c in October.

capital raising announcement

Letter detailing the Share Purchase Plan at 30c, $1,200–$15,000 per holder, to fund faster Cooper Basin oil and Surat CSG drilling. Capped at 110.8m shares ($33.2m); the board targets $12m, not underwritten. Same price as the recent placement to professional investors.

capital raising announcement

Fury-1 in PEL 115 spudded 15 November 2009, to 2,000 m, about 15 days. Lion Petroleum joins the Monitor farm-in, so Victoria's free-carried interest rises from 25% to 33% through Fury-1 and Airacobra-1. Victoria operates; Airacobra-1 follows. Subject to regulatory approval.

drilling spud

Victoria lifts its Western Margin oil interest (PEL 104/111, PRL 15) from 40% to 60% by acquiring Permian Oil from QGC, in exchange for a 3.75% Walloon interest in ATP 574P. It replaces the earlier Bow deal terms for the 3.75%. Needs JV consents, regulators and shareholder approval.

asset acquisition disposition

Snatcher-3 in PEL 111 is a third Snatcher oil discovery: logs and cores show a 20 m gross oil column (1,766.5–1,786.5 m) with 10 m net pay. It is cased and suspended for production, 787 m northwest of Snatcher-2. Field extent needs more drilling. Victoria holds 40%.

drilling result

Victoria agrees to buy Bow's ATP 574P interest (3.75% Walloon CSG, more in deeper sections) for $8m cash, 13m new shares and its ATP 608P and 805P stakes. This adds to its CSG holdings, but uses cash and adds shares. Subject to approvals.

asset acquisition disposition

Bow's side of the deal: it sells its ATP 574P interests to Victoria for $8m cash, 13m Victoria shares (about $4.5m, escrowed 12 months) and Victoria's stakes in ATP 608P and ATP 805P. Subject to ministerial and partner consents.

asset acquisition disposition

Victoria's own release of the Don Juan upgrade: 2P certified reserves rise to 100.9 PJ gross, 45 PJ net to Victoria, with 3P 89 PJ net. Reserve drilling in PL 171 and ATP 574P resumes late October/early November. Repeats Bow's announcement from the Victoria side.

resource reserve update

Operator Bow reports certified 2P reserves at Don Juan CSG almost tripled to 100.9 PJ gross, adding 66.7 PJ in the Taroom coal seams. 3P is 197.4 PJ. Victoria holds 45%. This is the ~100 PJ upgrade the earlier context expected.

resource reserve update

Heads of Agreement: Monitor Energy pays 100% of Fury-1 in PEL 115 to earn 75% of the Fury Prospect and the right to 37.5% of the licence, rising to 75% with a second well. Drilling planned mid-October 2009. Advances the PEL 115 farm-in thread.

farm in farm out agreement

Snatcher-2 is a second oil discovery in the Snatcher channel: logs indicate 13 m net oil pay in the Birkhead Sandstone. Cased for production at 1,822 m; flow test planned mid-October 2009. Victoria holds 40%.

drilling result

Snatcher-1 flowed clean 48 degree API oil at 218 bopd on a 12/64 inch choke in a short test, which continues another week. Snatcher-2 is expected to spud in about a week. A modest rate that adds to Growler output.

flow test result

Snatcher-1 is an oil discovery: logs show a 14 m gross oil column (1,772-1,786 m), mostly net pay, at 1,880 m total depth. It will be completed as a producer, tested mid July, and the rig moves straight to Snatcher-2. First Western Margin test succeeds.

drilling result

First Don Juan 2P reserves certified: 34.2 PJ gross, all in Juandah coals, against 192 PJ 3P. Carnarvon-5 (early July) is expected to lift 2P to about 100 PJ; Taroom has none yet. Net 2P to Victoria is 19 PJ in the table (45% interest).

resource reserve update

Snatcher-1 spudded at 2000 hours on 14 June 2009, drilling surface hole at 42 m. It is the first well of the Western Margin Oil Project drilling, planned to 1,871 m in 15 days (Victoria 40% operator).

drilling spud

Victoria agrees to sell all its onshore Carnarvon Basin WA interests (EP 325, 359, 433, 434, 406) to Empire, subject to WA government approval. It frames this as focusing on Surat CSG and Cooper Basin oil, with Snatcher-1 due to spud mid June.

asset acquisition disposition

Empire Oil & Gas, through Rough Range Oil, says it is buying Victoria's Carnarvon Basin permits: EP 359 (63.30%, including the Bee-Eater prospect), EP 325 (36.1%, Rivoli gasfield), EP 433, EP 434 and EP 406. Price is not stated in the text.

asset acquisition disposition

As operator with 40%, Victoria said the PEL 111 joint venture would drill Snatcher-1 in late May or early June 2009. The well will test whether oil is stratigraphically trapped in Birkhead channel sands 10 km from Growler, and partly satisfies the year-five three-well commitment.

drilling scheduled

MHA independently certified Don Juan (Victoria 45%) gross 3P recoverable reserves of 192 PJ, 86 PJ net to Victoria, its first certified reserve. Testing to certify 2P reserves starts Q2 2009, with 2P targeted early in the second half. This resolves the awaited certification.

resource reserve update

The sale of Victoria Petroleum USA to Adelaide Energy for A$3.3m has been terminated by mutual agreement because the sale conditions could not be met in time. Victoria is negotiating with other bidders and expects an offer in the first quarter of 2009.

asset acquisition disposition

Growler-5 reached 1,822 m; logs and side wall cores confirm an oil zone in the Birkhead (1,732-1,749 m), similar to the productive Growler-3. Production casing is set, with testing in January 2009. Growler is now about 950 bopd, up from 200 bopd at the start of 2008.

drilling result

Victoria placed 48 million shares at 14 cents to raise $6.72m before costs, via ABN-AMRO Morgans. Funds go to accelerated Surat Basin CSG work, Cooper Basin oil development and working capital. The price is below the 18c quoted in late October.

capital raising announcement

Bow, operator with 55%, says Don Juan gas content data (Victoria 45%) identifies a 225 sq km focus area with 2.5-4.8 m3/tonne, like adjacent Lacerta, and up to 200 PJ gas in place. Reserves certification and extended testing planned early 2009. Follows the earlier awaited desorption results.

resource reserve update

Stormbird-1 reached 2,176 m with the Birkhead sands water bearing. Basement quartzite recovered 1.5 litres of 43 API oil, a first for PEL 104, but it was judged non-commercial and the well was to be plugged. This was the last of the four 2008 exploration wells, and the rig moved to Growler-5.

drilling result

Tigershark-1 logs, cores and formation testing show only minor, non-commercial oil shows at 1,715-1,718 m, so it will be plugged and abandoned. Live oil is seen as positive for migration. Rig moves to Stormbird-1 (up to 1.1 mmbbl P10).

drilling result

Odin Energy finalised sale of its stake in Victoria for $9.8m. Its two directors resign from Victoria's board. Inference from the later quarterly report: the buyer was Sentient Group (15.52%). Ends the Odin shareholding noted earlier at about 18%.

asset acquisition disposition

Tigercat-1 logs and cores confirm a net 7 m of oil pay in the Birkhead over a gross 18.5 m (1,752-1,770.5 m). Production casing is being run to complete it as a future producer. Resolves the earlier pending logs; rig moves to Tigershark-1.

drilling result

Victoria accepted Adelaide Energy's A$3.3m offer for its US subsidiary, subject to final agreement and due diligence. Delivers the planned US exit to focus on Cooper Basin oil and Surat CSG, with proceeds for Australian exploration.

asset acquisition disposition

Adelaide Energy says its offer to buy Victoria Petroleum USA for A$3.3m has been accepted, subject to a sale agreement and due diligence. Effective 1 July 2008; assets include West Florence, Flour Bluff, Margarita, Vallecitos and Hal. Adelaide cites over A$1m a year net revenue.

asset acquisition disposition

Warhawk-1 is cased as a potential producer, with thin, less-developed Birkhead sands than Growler. The PEL 104 joint venture terminated the Odin Tempest Permian farm-in on 29 September, so Stormbird-1 replaces Fokker-1. Rig moves to Tigercat-1.

material agreement termination

Impress says Growler-3 began producing 20 September, flowing naturally at 1,125 bopd on a restricted choke, earlier than Growler-1's 120 bopd shut-in tie-in. Growler-4 awaits a workover rig, with about 500 bopd expected. Production beats the earlier 750 bopd gross end-December projection.

production update

Cuisinier-1 (ATP 752P, Santos operator) recovered 104.5 barrels of oil over 29 hours from the Murta Sandstone, 1,622-1,634 m, and will become a beam pump producer. Victoria's first Queensland Cooper oil producer; it retains 15% and is carried on up to five more wells.

flow test result

Growler-3 (Victoria operator, 40%) flowed 47-degree API oil at 1,673 bopd with no water, from a 19 m column and 13 m net pay. Compared with ~200 bopd field output, Growler-3 and 4 are targeted on stream in October 2008. Rig moves to Warhawk-1.

flow test result

Wireline logs confirm Growler-4 (Victoria operator, 40%) has an 18 m oil column and up to 9 m net pay, better than Growler-1 and 2. It will be completed as an oil producer; the Growler field started flowing in March.

drilling result

Hudson-1 reached 2,430 m and is being plugged and abandoned as a dry hole. The oil shows are read as residual oil or migration. Victoria (15%, fully carried) still sees other prospects between it and Cuisinier. Growler drilling resumes about 12 August.

drilling result

Victoria confirms PEL 88 renewed for 5 years and assignments approved. It now holds 50% and operates, with Enterprise Energy at 50%, completing the April agreement. The permit work program includes one well in year five.

asset acquisition disposition

Mosaic Oil can farm into Victoria's south-west Surat oil permits by funding seismic and up to three wells. After the farm-in, Victoria would keep 15.6% of Stratton, 19.297% of Rookwood and 7.5% of ATP 805P Southern Blocks, with Donga and Rookwood fields excluded.

farm in farm out agreement

Victoria places 41.75 million shares with Queensland Gas Company at 22.5 cents to raise $9.39 million for Surat Basin coal seam gas work. QGC becomes the largest shareholder at 19.24%, with gas marketing and technical advisory agreements.

capital raising announcement

Origin confirms Freshwater Point 1 was plugged and abandoned at 1,817 m, with no hydrocarbons interpreted from logs in the target sandstones. It is a dry hole for the 5% interest.

drilling result

Victoria confirms Freshwater Point 1 (5%) was plugged and abandoned with no hydrocarbons. The Managing Director says other prospects remain in the permit, and drilling now shifts to Hudson-1 in Queensland, expected to start next week.

drilling result

Cuisinier-1 is an oil discovery: 6 m net pay in the Murta Formation, cased as a producer. Production is expected early Q3 2008 via Santos infrastructure. It is Victoria's first Queensland Cooper oil producer, and Hudson-1 is due in June.

drilling result

Impress says Growler is making only 200-210 bopd, 5,500 barrels so far, below the 300 bopd target. The test may stretch to 150 days, and confirmation of productivity slips from Q1 to Q3 2008. Growler-3 and three exploration wells are planned.

production update

Enterprise Energy announces that Victoria's subsidiary and Enterprise's will take over PEL 88 interests from Cooper, Sundance and Liberty on renewal, ending at 50% each. Victoria (currently 10%) would operate. Subject to ministerial renewal and approval.

farm in farm out agreement

The board fight ends in a negotiated settlement after talks with QGC and Odin. Denis Patten (ex-QGC founding director) becomes chairman, with Odin's Bajada and Short joining; Hoops steps down. Pett, Wrixon and Kopcheff stay, resolving the spill threat.

director officer appointment

Victoria, as operator, announces first oil production from Growler, PEL 104's first oil. Both wells flowed at 100 bopd from 12 March, with pumps expected to lift output to 300 bopd. Oil is trucked to Moomba. This delivers the long-awaited start of production.

production update

Queensland Gas Company (QGC) discloses a 7.13% stake (19,853,134 shares) in Victoria. QGC already operates ATP 574P (QGC 60%, Victoria 30%); a 5-well development program there is planned from mid 2008, subject to JV approval, targeting 50 bcf certification.

other

Victoria's company secretary tells shareholders that Kopcheff will not remain a director if Odin's nominees Short and Bajada are elected, contradicting Odin's claim they would work with him. Shareholder meetings are on 27 March 2008.

agm notice

Odin raises its offer to holders under 10,000 shares to 17c, from 15c, open to 4 April 2008, and will top up earlier acceptors by 2c. It says it holds about 32.1 million shares, 11.5%, and asks for proxies for the 27 March meeting.

other

Impress reports the Growler road opened 28 Feb and Growler-2 flowed 70 bbl/day to storage on 4 March, marking the start of the extended test. Flooding may not reach the area until April, and may not affect it. Pumps still need a workover rig.

production update

After the US operator's withdrawal, Victoria's West Florence interest rises to 41.67% in 12,000 acres and up to 29.17% in 13,000 acres, and it becomes operator. This is at little cost, and it plans to sell its US assets; buyers have expressed interest. A further well is planned for mid 2008.

asset acquisition disposition

Odin Energy says it holds about 10% of Victoria, making it the largest shareholder, and offers 15c a share to holders under 10,000 shares, open to 12 March 2008. It wants to replace the non-executive directors and refocus on the Cooper Basin.

other

Odin Energy, via Glory Run, holding about 6.5% of Victoria, has requested a general meeting to remove directors Pett, Hoops and Wrixon and replace them with two Odin nominees. A second board challenge following the Smith letter.

other

Shareholder update: Growler road due late February and production facilities mid March 2008, then extended test at 300 bopd gross. Growler P50 oil in place now 7.7 mmbbl, recovery 1.6 mmbbl. PEL 115 partners Impress and Roma have withdrawn; Victoria seeks a farm-in for 25% free carry.

investor presentation

Victoria says shareholder Eddie Smith (3m shares) is soliciting support to requisition a general meeting to remove the four directors, including MD Kopcheff and chairman Pett, and appoint three of his nominees. The board will write to shareholders.

other

Carnarvon-1, the third Don Juan CSG well, has about 13.5 m of coal and free gas flows from 74 m. MHA approved a certification program of six core holes and eight firm plus four contingent pilot wells, targeting 200 PJ of 2P reserves by end 2008.

drilling result

Schoenfield #1 at El Fatso reached 13,371 ft; gas readings were elevated but there is not enough sand reservoir for commercial gas, so it is being plugged and abandoned. A dry hole for the 20% committed first well. Victoria turns to Margarita and West Florence.

drilling result

Drilling has begun at Schoenfield #1 on the El Fatso prospect in Texas, at 2,125 ft with a 13,740 ft target in about 30 days. Victoria is committed to the first well at 20% (15% after casing point). Targets are unproven.

drilling spud

Victoria completed a placement of 32.5 million shares at 13c, raising $4.2m before costs, under a prospectus dated 20 November 2007. It follows the $5.6m raised at 20c in July 2007, at a lower price.

capital raising announcement

Victoria completed buying a 20% interest in the El Fatso gas and condensate prospect in Wharton County, Texas, reducing to 15% after casing point. Operator estimates unrisked recoverable up to 72 bcf; first well due to start late December.

farm in farm out agreement

Taringa South-1, the first Don Juan coal seam gas well, flowed methane at a stabilised 370,000 cubic feet a day at 145 m, with about 407 barrels of water a day. Early positive sign for Victoria's 45%; reserve certification still targeted early 2008.

well test result

Greenearth lodged its prospectus for a $15m IPO at 30c a share, with $8m priority for Victoria and Lakes shareholders on the 12 November record date. The offer closes 14 December. Victoria expects to hold 5% after listing in January 2008.

capital raising announcement

West Florence-1 in Colorado began oil production on pump at 32 bopd and 101 barrels of water from the Codell, following the October pump plan. A Pierre Shale well and a 3D seismic survey are planned. Victoria holds 25%.

production update

Formal farm-in agreement signed with Santos and Avery for ATP 752P, firming up the August letter of intent. Seven wells plus at least 300 sq km of 3D seismic (about $18.5m) fully carried; Victoria keeps 15%. Santos operates, first wells from Q1 2008.

farm in farm out agreement

Ascender-1 was dry: logs and cores found no hydrocarbons in the Birkhead sand at 1,726 m, and it will be plugged at 2,093 m. Victoria (40%) now focuses on starting Growler at about 300 bopd in December 2007, then Gannet and Warhawk in 1H 2008.

drilling result

Impress reports Ascender-1 spudded 20 September in PEL 111 on Ensign Rig 20, to 2,100 m, about 16 days. It is the first PEL 111 well and the next step along the Jurassic oil fairway north of Growler. Birkhead P50 recoverable is 2.6 mmbbl.

drilling spud

Lancer-1 was plugged and abandoned; a Permian oil show was seen but judged non-commercial. Another dry result for Victoria's 40% PEL 115 program. The rig moves 220 km to Ascender-1 in PEL 111, starting in about ten days.

drilling result

Victoria signed a letter of intent with Santos and Avery expanding the ATP 752P farm-in from 3 to 7 wells plus 300 sq km of 3D seismic, about $18.5m total. Victoria is fully carried, ends with 15%. Santos becomes operator; Hudson-1 is delayed to Q1 2008.

farm in farm out agreement

After fracture stimulation, West Florence-1's Codell and lower Niobrara swabbed 25 barrels of oil in 12 hours with gas, which management says looks commercial versus adjacent fields. Mid Niobrara stimulation starts 24 August. Improves on earlier disappointing gas tests. Victoria holds 25%.

well test result

Cased-hole test at Wilpinnie-4/Tomcat recovered mud filtrate, formation water and only 16 barrels of oil, differing from the earlier 144 bopd flow. Cause of water unknown; partners will review. Victoria holds 20%. Disappointing against Tomcat's earlier recoverable estimates.

well test result

Margarita shallow program ended: Dona Carlota and Agavero are gas discoveries (1.3 bcf gross recoverable) heading to sales lines; Climaco-1 was plugged and abandoned as non-commercial. Two of three wells succeeded; about 2.3 mmcfd gross expected. Victoria holds 20%.

drilling result

Advent Energy (via MEC) signed conditional farm-ins to earn up to 50% of the Typhoon (PEL 104) and Catalina (PEL 111) blocks from Victoria and partners, with a right to join four wells. Bringing in a new party to test 18 Permian prospects.

farm in farm out agreement

Growler-2 flowed a stabilised 54 bopd from a 12.5 m interval, no water. Management expects over 170 bopd on pump; with Growler-1's 160 bopd, the field could produce about 330 bopd from Q4 2007. Victoria holds 40% as operator. Confirms the Growler-2 appraisal.

flow test result

Partner Fall River says the first two West Florence-1 Dakota zones produced no commercial gas; the Upper Bench gave none. Re-interpreted logs suggest the remaining Dakota and Muddy J zones will not be commercial at this location. Oil formation testing follows in 2-3 weeks. Victoria holds 25%.

well test result

Growler-2 logs and side-wall cores show a 15 m gross oil column at 1,722-1,737 m in the Birkhead, reservoir similar to or better than Growler-1. With Growler-1, oil column is at least 18 m. Total depth 1,829 m; testing yet to come.

drilling result

Operator Strike Oil was commissioned by the Department of Defence to study supplying about 8 PJ over 20 years from the Rivoli gas field near Exmouth, with first gas possible in 2009 if approved. Victoria holds 36.1% of EP325. Feasibility only; no approval or price yet.

material agreement

Victoria completes its placement of 28 million shares at $0.20, raising $5.6m before costs, announced 12 June. Each two shares carry a free option, subject to shareholder approval at a general meeting in early August. This is a cash top-up after $3.2m at March.

capital raising announcement

Donna Carlota-1 began testing at 1.02 million cubic feet of gas per day with no water, from the 5.6 m net pay zone. Victoria holds 20%. Climaco-1, the last well, is about to start drilling.

well test result

Agavero-1 is a second gas discovery in the Margarita program: 5.5 m of gross gas pay at 889 m with no water, ahead of testing. Victoria holds 20%. Climaco-1 is next, and the program is now expected to finish mid July.

drilling result

West Florence-1 showed net gas pay of 7.6 m in Muddy J and Dakota sands, plus oil shows in other zones; through-casing testing is planned for the third week of July. Participants also gained rights to earn up to 70% of 13,000 more acres; Victoria's share is up to 17.5%.

drilling result

Partner Sun Resources reports Dona Carlota-1 reached 1,524 m with 5.6 m of net gas pay in the Frio 1.33 sand; casing is run for production testing. Reserve estimate is 0.62 bcf, below the 0.8 bcf pre-drill; Victoria holds 20%. Agavero #1 is next.

drilling result

Victoria forms the Don Juan coal seam gas joint venture with Bow (operator) and Roma CBM, combining ATP 593P and ATP 771P: Victoria 45%, Bow 45%, Roma CBM 10%. Up to three core holes are planned, with a pilot by end-2007; the area could hold over 500 PJ.

joint venture update

Victoria enters the Redback gas exploration joint venture in South Texas with Wandoo (operator, 25%), holding 37.5% alongside Sun at 37.5%. Victoria and Sun fund a US$360,000 six-month seismic review, with at least 7 prospects already seen; first well aimed for December 2007.

joint venture update

Growler-2, an appraisal well 705 m from the Growler-1 oil discovery, began drilling 8 May 2007 and is waiting on weather at 108 m; planned depth 1,785 m. Victoria operates with 40%. Growler P50 oil in place is 5.7 mmbbl, 1.4 mmbbl recoverable.

drilling spud

Impress reports that re-perforating Growler-1 lifted stabilised flow to 30 bopd from the 20-25 bopd of the November 2006 test. It expects about 160 bopd initially on pump, possibly over 250 bopd if it cleans up. Growler-2 is about to start.

flow test result

West Florence-1, a new Colorado well operated by Mountain Petroleum, began drilling 3 May 2007 and is at 502 m. Victoria holds 25% in a new US project; target is 100-200 bcf of gas, plus about 5 mmbbl oil in each of three formations if present.

drilling spud

Greenearth Energy, one-third owned by Victoria, was awarded geothermal permits GEP 12 and GEP 13 covering the Latrobe Valley. This resolves the open permit thread; a capital raising with entitlements to shareholders is envisaged later this year, not Q1 as earlier expected.

regulatory community update

Wirraway-1 DST-2 recovered 7 barrels of 47.5 API oil at a stabilised 67 bopd, no water, from the 17 m column, resolving the earlier misrun. The well will be completed as an oil producer, then the rig moves to Growler-2. Victoria holds 40%.

well test result

Preliminary logs, pressure and sidewall core data indicate Wirraway-1 intersected a 17 m gross oil column (1,725-1,742 m) in the Birkhead, and oil was recovered on wireline testing. Testing over five days follows; Victoria holds 40%.

drilling result

Margarita shallow program: Dos Dedos #1 and Milagro #1 are producing or about to; El Viejito #1 suspended after water inflow. Empyrean now funds three more shallow wells from mid-May to end July. Cumulative rate about 0.5 million cubic feet a day; Victoria keeps 20%.

joint venture update

Wirraway-1 began drilling at 1800 hrs on 4 April and was at 81 m. It targets up to 13 million barrels if oil is present, and is the first of an eleven-well Cooper Basin program. Victoria operates with 40%.

drilling spud

Wireline logs confirm Jingemia-11 intersected the full 31 m Dongara Sandstone: 23 m of oil column over about 8 m of partly swept oil zone. The top is 14 m updip of the best producer. The well is being completed; the target remains about 5,000 bopd. Victoria holds 5%.

drilling result

Sun Resources says El Viejito #1 will no longer be connected to a sales line because further testing showed water coning in the thin gas reservoir. This reverses the earlier success reported on 6-7 March. Dos Dedos #1 awaits testing and Milagro #1 is an oil discovery. Victoria holds 20%.

drilling result

Jingemia-11 drilled good oil shows in the target Dongara Sandstone over 31 m (2,489-2,520 m), at 2,528 m depth. The managing director calls it a successful development well, aiming to lift the field from 3,200 to about 5,000 bopd. Victoria holds 5%.

drilling result

Victoria plans eighteen wells over the next six months, including Wirraway-1 in late March and Growler-2. Wilpinnie-4 production test is set for June and Tomcat-1 for July; three more Margarita shallow wells are planned for late April. Net production is 280 bopd, targeting about 500.

drilling scheduled

Telowie-1 was plugged and abandoned at 1,384 m after a Murta test recovered only 0.5 litres of oil, so it is not commercial. Focus in PEL 94 shifts to the Dunoon Horst, with drilling likely in the next few months. Victoria held 15%.

drilling result

El Viejito #1 flowed gas at up to 210 mscfd and stabilised at 175 mscfd on a choked test. Dos Dedos #1 found 3.5 m of gas pay in 3 zones. Gas contracts are being sought; Victoria holds 20%.

flow test result

Victoria confirms Gamma-1 reached 1,517 m with only minor oil shows and was plugged and abandoned. Nora-1 is delayed for review and a Watson 3D survey in April; two Barta wells are planned for the second half of 2007. Victoria is carried and keeps 25%.

drilling result

Gamma-1 reached 1,517 m, found no significant oil shows in the primary targets, and was plugged and abandoned. It is the second dry Wompi well after Marracoonda-2. Nora-1 is delayed pending a Watson 3D seismic survey planned for April.

drilling result

Bow says Gamma-1 spudded 21 Feb in the Wompi Block, planned to 1,504 m, with 6.1 mmbbl potential in one zone. Nora-1 (up to 6.5 mmbbl) follows. Victoria is fully carried and keeps 25%. Follows the dry Marracoonda-2.

drilling spud

Tunkalilla-1 reached 1,422 m with no hydrocarbon shows while drilling or on logs, and is being plugged and abandoned. This is a dry hole against 1.8 mmbbl potential. The rig moves to Telowie-1. Victoria held 15%.

drilling result

Bow says Marracoonda-2 will be plugged and abandoned; logs show only minor oil, interpreted as sub-commercial or residual. This is a dry result for the first Wompi well, and the rig moves to Gamma-1 (6.1 mmbbl potential). Victoria is fully carried.

drilling result

Wilpinnie-4 will be cased at 1,587 m for later production testing. Logs show an 18 m gross oil zone, 1,476-1,494 m, which management says is close to pre-drill expectations. Santos's later testing will show how far the Tomcat pool extends into Victoria's PEL 115.

drilling result

Victoria confirms Marracoonda-2 spudded 11 January, first of three Wompi wells with up to 13 mmbbl recoverable potential if oil is present. Victoria is fully carried by Avery and keeps 25%. Target reached in about nine days.

drilling spud

Victoria, as PEL 115 operator, reports Wilpinnie-4 (Tomcat) spudded 9 January, drilling at 264 m toward 1,586 m. Tomcat could hold 3.5 mmbbl mean recoverable, up to 5.6 mmbbl (P10). The PEL 115 JV pays 100% and earns 50% if commercial.

drilling spud

Victoria confirms drilling began on El Viejito #1, first of six shallow Margarita wells in Texas (up to 8-10 bcf gross). It was running surface casing at 192 m, with drilling to 1,920 m after Christmas. Victoria's interest is 20%.

drilling spud

Bow reports Donga-4 was cased and suspended as a future oil producer after logs and cores showed oil-saturated sandstone from 1,565 to 1,571 m. Completion is planned early 2007. The Marracoonda-2 rig move slips to 4 January 2007 over Christmas.

drilling result

Donga-4 (Victoria 15%) was cased and suspended as a future oil producer, with oil-saturated sandstone over 6 m from 1,565 to 1,571 m. This resolves the case-and-suspend decision after the weak test. Completion for production is planned early 2007.

drilling result

The Donga-4 drill stem test recovered only a minor amount of light sweet oil and mud, with no water; the test appeared blocked. Drilling continues to total depth, then logs and pressure probes will decide whether to suspend the well for production.

well test result

Donga-4 (Victoria 15%) hit good oil shows in the Donga sandstone from 1,563 m, with over 20% porosity. The top is at least 18 m above the field's oil-water contact. A drill stem test is under way; no flow result yet.

drilling result

Victoria confirms a 5 December farmin by Empyrean Energy for the Margarita gas project in Texas, where Victoria holds 20%. Three shallow wells start about 18 December (5 bcf gross target), then three more in February, with three deep wells planned mid-2007.

farm in farm out agreement

Operator Bow spudded the Donga-4 appraisal well in ATP 805P on 1 December, targeting the Donga sandstone that produced oil at Donga-3. Victoria holds 15%; Bow sees 2.2-5 million barrels potential. Donga-5 follows if successful.

drilling spud

Partner Impress reports Growler-1 free flowed only 20-25 bopd, and propellant fracturing did not improve it. Preliminary recoverable is about 1.0 million barrels, well below the earlier 4 million barrel possibility. An extended production test application was lodged 18 October.

well test result

Victoria proposed a share consolidation, saying the large share count distracted the market. If approved, it planned a free bonus option for every four shares held on 31 January 2007 (25c exercise, three years). It confirmed Wirraway-1 from early December and Tomcat-1 in December.

capital raising announcement

Jingemia-8 (Victoria 5%) clean-up flowed 3,250 bopd from a 21.5 m interval and is being tied in. Victoria targets gross field output of about 4,500 bopd, up from the recent decline, and sees 4-8 million barrels recoverable, subject to more drilling.

well test result

Victoria and partners stopped trying to retrieve the stuck valve and guns at Eagle North-1, calling it not cost effective. The well will be re-entered and sidetracked later, with the timing depending on rig availability. This ends the retest attempt, so no flow rates were obtained.

drilling result

The PEL 115 JV will pay 100% of Tomcat-1 in Santos' PPL 93, due late December, to earn 50% of the Wilpinnie North Block if it is a commercial producer. Victoria would hold 20% after earning. The prospect could hold 3.5-5.6 million barrels if oil is present.

farm in farm out agreement

Victoria, as operator, confirms Mirage-3 and Mirage-4 are making only 30-35 and 35-40 bopd, which it calls moderate. It says about 75 bopd was added to the field's 239 bopd, giving 314 bopd, and expects higher pump rates to help.

well test result

Bow reported that Banff-1 reached 1,650 m, with wireline logs and side wall cores showing no hydrocarbon zones. The well was being plugged and abandoned, leaving Bow 65% and Victoria 35% of the Barcoo Block.

drilling result

Partner Impress reports the fracture-stimulated Mirage-3 and Mirage-4 are producing only about 30-35 and 35-40 bopd, with 60-70% water. It calls the results disappointing, well short of the roughly 1,000 bopd field goal.

well test result

Phoenix Resources will fund a $100,000 airborne and soil survey in EP 359 (Exmouth, WA) for an option to drill one well costing it $1.5m and earn 50%. Victoria's interest is not stated in the text (an inference: the table shows 33.36%, 63.30%, 3.34%).

farm in farm out agreement

Operator Bow reports Banff-1 spudded at 2 pm on 25 September. After the well, Bow says Barcoo Block interests will be Bow 25%, SEQOil 40% (Bow purchasing) and Victoria 35%. This is the first Queensland Cooper well in the ten-well program.

drilling spud

Growler-1 reached 1,993 m with no further oil shows below the Birkhead; it will be cased as a Birkhead oil producer. Victoria estimates possibly up to 4 million barrels recoverable, well below the pre-drill 16 million target, and very preliminary.

resource reserve update

Growler-1's drill stem test recovered about 38 barrels of light oil in two hours from the basal Birkhead sand. Victoria calls it very encouraging; further testing is needed. The quoted oil target is now up to 12 million barrels, down from 16.

well test result

Wireline logs show Jingemia-8's entire 27 m Dongara Sandstone (2,482-2,509 m) is oil saturated, and apparently separate from the rest of the field. It will be cased as a producer. Victoria (5%) lifts its field target to 4,000-5,000 bopd gross.

drilling result

Victoria and Lakes Oil will each take a 33⅓% stake in new company Greenearth Energy, initially capitalised at $750,000, to bid for Victorian geothermal permits. Applications are planned for October. Victoria's share is $250,000 of stock. A new venture outside oil and gas.

asset acquisition disposition

Primero-1 has found more shallow gas sands, 26 m thick versus 11 m expected, with flow rising with depth. The well is likely to be completed as a future gas producer. Deeper targets, including the 300 bcf Reids Dome Beds, are still to be drilled.

drilling result

Primero-1 hit a strong shallow gas flow above 2.8 million cubic feet a day at 135-142 m, from a known formation. This is an early positive sign, not the deep 300 bcf target. Victoria holds 40% free carried.

drilling result

Victoria offers a Share Purchase Plan to existing shareholders at 2.5 cents a share, a 7.4% discount, for $1,000-$5,000 each. It is not underwritten and closes 14 August; no total size is stated. Funds go to exploration and development in Australia and the USA.

capital raising announcement

Primero-1 began drilling on 12 June at Reids Dome (PEL 231), targeting up to 300 bcf of gas, if present, at 2,700 m. Victoria holds a 40% free carried interest. This starts the long-awaited White Sands Reids Dome well.

drilling spud

Jindivik-1 is being plugged and abandoned after low-permeability Murta and a little water in the test. Resolves the Greater Mirage extension question negatively; more appraisal sites for second half 2006. Rig to return in August for PEL 104/111 wells (Growler up to 16 mmbbl).

drilling result

Jindivik-1 reached 1,700 metres. The Murta test recovered a little water, and the reservoir is low permeability, unlike Mirage-1. Mirage-3/4 production now late June/July, goal over 600 bopd this year versus the earlier 1,000 bopd target.

drilling result

Jindivik-1 spudded 3 May in PEL 115 to test whether the Murta oil pool extends across Mirage-Lightning-Jindivik (23 million barrels oil in place concept). Primary Murta target at 1,313 metres; planned total depth 1,683 metres. Victoria 40% operator.

drilling spud

Lightning-1 began drilling on 7 April in PEL 115, testing a potential 23 million barrels of Murta oil in place plus deeper Permian targets of up to 130 bcf gas or 18 million barrels. Planned total depth is 2,007 metres in 14 days.

drilling spud

The Eagle North-1 vertical test failed to flow: only a small oil recovery, and the operator infers (inference from the nitrogen test) the perforations probably did not connect the Gatchell sands to the well. The venture unanimously chose a 90-150 metre horizontal lateral, now being drilled.

well test result

Geordie-1 is a dry hole: logs and sidewall cores at 2,475.8 metres showed no commercial hydrocarbons and it will be plugged and abandoned. The first of Victoria's 8-well 2006 Cooper program fails; Victoria held 10%.

drilling result

Sun Resources relays that Eagle North-1 logs show about 7 metres of net oil pay in the Gatchell sand (4,136-4,157 m), similar to the 1986 Mary Bellocchi-1 well. Casing and a test follow next week. A first positive sign, not yet a flow result.

drilling result

Victoria says Eagle North-1 logs indicate oil in the Gatchell sand, 7 metres net pay in a 21 metre interval (4,136-4,157 m), resembling Mary Bellocchi-1. It will be cased and tested over about 8 days; a horizontal side-track could flow up to 1,000 bopd. Oil not yet flowed.

drilling result

Impress says Mirage-2 found an oil-saturated Murta section similar to producing Mirage-1, with oil indications from 1,322 to 1,337 metres in two cores. The well will be drilled to about 1,620 metres, then completed. Early positive sign for the development program.

drilling result

Victoria reports oil shows in two Murta cores at Mirage-2 (1,322-1,337 metres), preliminarily similar to producing Mirage-1. Logs and core analysis will test their significance. Drilling continues at 1,374 metres toward 1,687 metres. Quoted gross output is now 400 barrels a day.

drilling result

Victoria as operator spudded Mirage-2 in PEL 115 on 31 January, the first of three Mirage development wells. The aim is to lift output from the current 440 barrels a day to a target of 1,000 by mid-2006.

drilling spud

Gross oil output from the Mirage and Ventura fields in PEL 115 (Victoria operator, 40%) reached a new high of 480 barrels a day. Victoria's total net production is now 455 barrels a day. Interpretation suggests up to 20 million barrels in place; the Mirage-2 well is planned to start about 29 January. Mirage-2 targets 1,000 barrels a day by mid-2006.

production update

Victoria Petroleum, as operator, confirms Eagle North-1 has spudded and was at 252 metres on 12 January. It targets 4,206 metres within 14 days. This starts the first appraisal of the Eagle Oil Pool since the 2001 well, where Victoria holds 20% with a near-free carry.

drilling spud

Victoria Petroleum and Sun Resources each hold 37.5% of a new Texas Gulf Coast joint venture with Wandoo Energy (25%). The two partners fund a US$360,000 six-month seismic evaluation. In return they have first right to earn 75% of any prospects, which Sun says are mainly gas.

joint venture update