QUARTERLY REPORT FOR THE PERIOD ENDING JUNE 30, 2003

The most significant highlight for the quarter for Victoria Petroleum N.L was the success of the Extended Production Testing at Jingemia-1 in confirming the Jingemia Oil Field discovery in the North Perth Basin, Western Australia.

As well as being the first commercial oil discovery in this permit in the North Perth Basin, this production elevates Victoria Petroleum N.L. to the ranks of Australian oil producers, with an average net production for the quarter of 130 barrels of oil per day.

Planned appraisal and development drilling on the Jingemia Oil Field over the next six months has the potential commencing with Jingemia-2 in September 2003 to significantly increase the current production rate of 1750 barrels of oil per day.

Victoria Petroleum N.L. also has the immediate opportunity to build on its current oil production base through the drilling of two wells in the offshore Carnarvon Basin, Western Australia commencing in September and three wells in the Surat Basin, Queensland commencing in October 2003.

Additional opportunity will come from the March 2004 South Australian Cooper Basin drilling program where Victoria Petroleum will have a significant 40% free carried interest through the drilling of two wells in an active exploration area.

In all, Victoria Petroleum NL has scheduled an active drilling, appraisal and production testing program within Australia and the USA over the next nine months with up to eleven wells planned to be drilled or production tested.

Details of the full report released to the ASX are available for viewing on our website www.vicpet.com.au.

HIGHLIGHTS FOR THE QUARTER

1. Confirmation of Victoria Petroleum N.L. joining the ranks of Australian oil producers with average nett production for the quarter of 130 barrels of oil per day.
2. Long-term oil production testing at Jingemia No. 1, EP413, North Perth Basin commenced in early May 2003 at flow rates of up to 2000 barrels of oil per day with production in excess of 75,000 barrels of oil and no water at quarter end.
3. Planning of development and appraisal drilling of Jingemia Oil Field to significantly increase oil production to take place with Jingemia-2 appraisal well scheduled for September 2003.
4. Planned offshore Carnarvon Basin drilling in September-October 2003 of Cerberus and Vesta Prospects testing recoverable prospect targets of 23 million barrels of oil, if oil is present.
5. Successful farmout of three wells in Surat Basin Queensland permits planned to commence drilling in October 2003 testing potential recoverable targets of 16 million barrels of oil in North Giligulgul, 12 million barrels of oil in Rookwood South and 6 million barrels of oil in Don Juan prospects, if oil is present.
6. Successful farmout of highly prospective South Australian Cooper Basin permit PEL 104 adjacent to Australia's largest onshore oil field, Tirrawarra, resulting in free carried no cost Victoria Petroleum interest of 40% through seismic and planned March 2004 two well drilling program.
7. Continuation of fracture stimulation and production testing of good oil show zones of up to 283 metres in Vacqueros and Monterey Formation in San Antonio-1 in California 2003 targeting up to 40 million barrels of oil.
8. Active farmout effort to seek partner to resume horizontal development drilling at 24 million barrels of oil and 62 billion cubic feet of gas Eagle Oil Pool Development Project in second half 2003.
9. First oil production net to Victoria Petroleum in USA of 50 barrels of oil per day plus indirect interest in net estimated oil and gas production for the three months ending June 30, 2003 of 68 million cubic feet of gas and 4,500 barrels of oil equal to 150 barrels of oil equivalent per day for 15%-owned Kestrel Energy, Inc., a US NASDAQ public company (Code: KEST)
10. Planned participation in a drilling and testing program of up to eleven wells in the next nine months.

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