QUARTERLY REPORT FOR THE PERIOD ENDING SEPTEMBER 30, 2003

The most significant highlight for the past quarter for Victoria Petroleum N.L was the success of Victoria Petroleum NL in increasing its permit interests in the South Australian Cooper Basin to become a major exploration player with an acreage position matching those of the other successful major players in the basin, Beach Petroleum Ltd, Stuart Petroleum Ltd and Cooper Energy N.L.

Victoria Petroleum NL is also entering into an exciting phase of development and exploration drilling in Australia, and the USA with up to 14 wells to be drilled over the next 9 months.

The development drilling in the North Perth Basin, Jingemia Oil Field should result in an oil production increase to 4,000 barrels of oil per day in the first quarter 2004. This significant planned oil production increase will cement Victoria Petroleum NL's position as an Australian oil producer in 2004 with net oil production of 200 barrels of oil per day.

The main focus of attention on Victoria Petroleum's 2004 exploration program will be the 5 well drilling program planned to commence in March 2004 on Victoria Petroleum NL's South Australian Cooper Basin permits.

The opportunity to build the Victoria Petroleum NL current oil production base will come from Victoria Petroleum's significant 40% free carried interest through the drilling of two wells in PEL 104 and contributing interest in three wells in PEL 111 and PEL 115.

Victoria Petroleum NL is confident that with its 5 well SA Cooper Basin drilling program, planned to commence in March 2004, that Victoria Petroleum NL will achieve exploration drilling success, currently running at 40%, that Beach, Stuart and Cooper Energy have achieved in the SA Cooper Basin.

Prior to the commencement of the March 2004 drilling program in the South Australian Cooper Basin, Victoria Petroleum N.L. also has the immediate opportunity to build on its current Australian and USA oil production base through the drilling of three wells in the Surat Basin, Queensland commencing drilling in November 2003 and one well in the offshore Carnarvon Basin, Western Australia drilling in December 2003.

This major exploration and development program through 2004 well into 2005, is amply funded by the recent successful October 2003 $6.75 million fund raising.

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

A summary of the highlights from the Victoria Petroleum NL Quarterly Report follow:

HIGHLIGHTS FOR THE QUARTER

1. Successful completion of Jingemia Oil Field North Perth Basin appraisal well Jingemia-2 and Jingemia-3 water injection well for optimal production in the first quarter 2004 of up to 4,000 barrels of oil per day.
2. Planned commencement in early November 2003 of second Extended Production Test on Jingemia-1 and development drilling of Jingemia-4 for late December 2003/January 2004
3. Commencement of first well in 2003 - 2004 Surat Basin drilling program with November 2003 drilling of Don Juan North-1 on Don Juan Prospect with a recoverable target of 4 million barrels of oil, if oil is present.
4. Offshore Carnarvon Basin drilling in December 2003 of Vesta Prospect testing recoverable target of 23 million barrels of oil, if oil is present.
5. Follow on Surat Basin drilling program in February 2004 testing potential recoverable targets of 16 million barrels of oil in North Giligulgul and 12 million barrels of oil in Rookwood South, if oil is present.
6. Victoria Petroleum NL attains 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%.
7. Victoria Petroleum now largest gross acreage holder in South Australian Cooper/Eromanga Basin with net acreage position second only to Beach Petroleum through acquisition of the five permit interests held by Australia Crude Oil Company Inc.
8. Major exploration drilling program of 5 wells to be drilled in prospective South Australian Cooper Basin permits PEL 104, PEL 111 and PEL 115 commencing March 2004 against a background of industry drilling activity of up to 21 wells over the next 9 months.
9. Active farmout effort to seek partner to resume horizontal development drilling 24 million barrels of oil and 62 billion cubic feet of gas in the Eagle Oil pool Development Project in first half in 2004.
10. Indirect interest in USA estimated oil and gas production for the three months ending September 30, 2003 of 63 million cubic feet of gas and 4,500 barrels of oil equal to 155 barrels of oil equivalent per day for 15% owned Kestrel Energy a US NASDAQ public company (KEST).
11. Planned participation drilling and testing program of up to 14 wells in the next 9 months.

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