Quarterly report - Victoria Petroleum

Exploration

Significant increase in Jingemia Oil Field, North Perth Basin, proved, probable and possible (3P) recoverable oil reserves to 15 million barrels.
Successful Jingemia-4 development drilling in North Perth Basin in late April 2004, with flow rate of up to 3,500 barrels of oil per day.
Major exploration drilling program of 5 wells commencing in late August 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 22 wells over the next 6 months.
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%.
Two well Surat Basin drilling program scheduled to commence late August 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.
Earning 45% interest in Wyoming Coal Bed Methane Project with up to 1.2TCF gas in place and pipeline infrastructure to market with planned first test well in September 2004.
Active farmout effort to seek partner to resume development drilling in October 2004, of the potential 24 million barrels of oil and 62 billion cubic feet of gas in the Eagle Oil pool Development.
Planned participation drilling and testing program of up to 14 wells in the next 6 months.

Production

Successful Jingemia-4 development well being brought on production effective 30 July 2004, to build production through August up to 4000 barrels of oil per day. Net oil production revenue of over $2 million projected for fiscal 2005.
June Quarter net oil production to Victoria Petroleum of 7,183 barrels of oil from Jingemia Oil Field.
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).