QUARTERLY REPORT FOR THE PERIOD ENDING MARCH 31, 2004

EXPLORATION AND PRODUCTION HIGHLIGHTS FOR THE QUARTER

1. Commencement of Jingemia-4 development drilling in North Perth Basin in late April 2004 with aim to increase oil production in second quarter 2004 to up to 4000 barrels of oil per day.
2. Offshore Carnarvon Basin drilling in mid May 2004 of Muggles Prospect testing recoverable target of up to 83 million barrels of oil, if oil is present.
3. Major exploration drilling program of 5 wells commencing in late June 2004 in prospective South Australian Cooper Basin permits PEL 104, PEL 111 and PEL 115 against a background of industry drilling activity of up to 27 wells over the next 9 months.
4. Victoria Petroleum NL holds the position of largest gross and net acreage holder in the Cooper/Eromanga Basin in South Australian and Queensland holding 13 permits with average VPE interest of 40%.
5. Victoria Petroleum NL is now the largest gross acreage holder in South Australian Cooper/Eromanga Basin with net acreage position second only to Beach Petroleum.
6. Two well Surat Basin drilling program planned to commence June 2004 testing potential recoverable targets of 12 million barrels of oil in Rookwood South, and 4 million barrels of oil in Don Juan North, if oil is present.
7. Farmin agreement completed to earn 45% interest in Wyoming Coal Bed Methane Project with up to 1.2TCF gas in place and pipeline infrastructure to market. Planned first test well in late May 2004.
8. Active farmout effort to seek partner to resume development drilling of the 24 million barrels of oil and 62 billion cubic feet of gas in the Eagle Oil pool Development in mid 2004, following May 2004 seismic program.
9. Planned participation drilling and testing program of up to 14 wells in the next 9 months.

1. Sustained high oil production from Jingemia-1 at rates in excess of 2000 barrels of oil per day with not water.
2. Indirect interest in USA estimated oil and gas production for the three months ending 31 March 2004, of 68 million cubic feet of gas and 4,500 barrels of oil equal to 157 barrels of oil equivalent per day for 15% owned Kestrel Energy a US NASDAQ public company (KEST).

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