QUARTERLY REPORT FOR THE PERIOD ENDING 30 JUNE 2005

HIGHLIGHTS FOR THE QUARTER

1. Commencement of preparations for drilling in October 2005 of Eagle North-1 development well on California Eagle Oil Pool Development Project, with potential to contain up to 34 million barrels of oil and 58 billion cubic feet of gas.
2. Commencement of 2005 exploration drilling program in South Australian Cooper Basin permits in October 2005 with five wells planned. First exploration well Tomcat-1 testing target with up to 20 million barrel oil potential, if oil is present, up dip to well with "oil show" of 785 barrels of oil per day.
3. Return to Surat Basin oil exploration drilling with the drilling in late August 2005 of West Pinnacle-1 targeting 8 million barrels of recoverable oil, if oil is present.
4. Two well offshore Carnarvon Basin exploration program commencing late August 2005 with Apache Energy targeting Gats and Hestia prospects with cumulative oil potential of up to 50 million barrels of oil, if oil is present.
5. Five exploration wells planned over the next three months with net target potential to Victoria Petroleum in excess of 50 million barrels of oil as part of 12 well exploration program over next six months.

6. Successful commencement of three well deep development drilling program on Flour Bluff Gas Field, Texas in early February 2005 with aim with continuing development success to increase gas production within 12 months to 40 million cubic feet per day.
7. Initial development success in first two wells in Flour Bluff Project increasing proved, probable and possible gas reserves to 171 billion cubic feet of gas.
8. Commencement of Mirage oil field production at 274 barrels of oil per day in April 2005 to produce estimated recoverable reserves of up to 3.6 million barrels of oil. Oil production at Ventura Oil Field planned to commence August 2005 at 180 barrels of oil per day.
9. Development drilling on Mirage Oil Field planned for fourth quarter 2005 to increase total Mirage Oil Field oil production to estimated 600 barrels of oil per day.
10. Planned increase in oil production up to 5,000 barrels of oil per day (250 barrels of oil per day net to Victoria) in fourth quarter 2005 in Jingemia Oil Field, North Perth Basin with the installation of artificial lift and drilling of two development wells by operator Origin Energy.
11. Ten development wells planned over the next six months as per the attached drilling schedule.
12. With development success, it is anticipated that in calendar 2005, the current and planned Victoria net oil production of 450 barrels of oil per day will generate net cash flow estimated at $5 million per year.
13. Victoria Petroleum N.L. has an 11% interest in Samson Oil & Gas N.L which has through its 78% shareholding in Kestrel Energy, Inc. reserves attributable to Samson of 26.1 billion cubic feet of gas equivalent with a 10% net present value of A$60.6 million. .
14. Victoria Petroleum development and production activities in Australia and USA are being carried out against a background of historical high oil prices in the range of A$60-70 per barrel.

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