HIGHLIGHTS OF THE VICTORIA PETROLEUM N.L. QUARTERLY REPORT FOR THE PERIOD ENDING SEPTEMBER 30, 2005.

The past quarter has been a very successful one for Victoria Petroleum N.L.'s development and production activities with continuing success in the Flour Bluff Gas Development Project, Gulf Coast, Texas; the commencement of oil production from the Ventura Oil Field with continuing long term oil production from the Mirage Oil Field in the SA Cooper Basin and the successful development and production enhancement program in the North Perth Basin Jingemia Oil Field which will increase field production levels to 5,000 barrels of oil per day in early November 2005.

While the above development activity lays the ground for a strong under pinning cash flow for Victoria Petroleum into the future, success in the aggressive exploration and appraisal drilling program of four wells over the next four months would add significant value to the Company.

With a cumulative net target in excess of 50 million barrels to Victoria Petroleum for the one well in California, one well in the Surat basin and two in the SA Cooper Basin and investor interest should be aroused.

Of special interest will be the drilling of the potential 42 million barrel oil equivalent Eagle project in California in the San Joaquin Basin in late November / early December 2005 and the Tomcat and Skyhawk prospects in the SA Cooper Basin in early 2006. Victoria Petroleum will have 20-40% interest levels in these three wells highly prospective wells drilling up dip to know oil flows.

Overall up to eleven exploration wells and seven development wells, a total of eighteen wells, are planned over the next six months.

This exploration, development drilling and increasing production activity in the USA and Australia will take place against a background of increasing oil production from the Jingemia Oil Field in the North Perth Basin and the South Australian Cooper Basin and increasing gas production from the Gulf Coast Texas with robust oil prices in excess of US$50 per barrel and US gas prices in excess of US$10 per thousand cubic feet.

A summary of the highlights from the Victoria Petroleum NL 30 September 2005 Quarterly Report follow:

HIGHLIGHTS FOR THE QUARTER

Exploration Activity

1. Commencement of preparations for drilling in late November/early December 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. Successful farmout of Victoria Petroleum interest in Eagle Oil Pool Development Project to Empyrean Energy PLC to provide Victoria Petroleum with near free carried 20% interest on success in Eagle North-1 drilling and completion for production.
3. Commencement in January 2006 of exploration drilling program in South Australian Cooper Basin permits with six wells planned. First exploration well Tomcat-1 testing target with up to 16 million barrel oil potential, if oil is present, up dip to well with "oil show" of 785 barrels of oil per day.
4. Exploration success in Surat Basin oil exploration drilling in October 2005 with the recovery of oil from the Donga-3 well, targeting 3 million barrels of recoverable oil in the Donga Prospect.
5. Four exploration and appraisal wells planned over the next four months with net target potential to Victoria Petroleum in excess of 50 million barrels of oil as part of 11 well exploration program over next six months.

6. Continuing successful development drilling program on Flour Bluff Gas Field, Texas with aim with continuing development success to increase gas production within 12 months to 20 million cubic feet per day.
7. Initial 2005 development success in the Flour Bluff Project increasing proved, probable, possible and potential gas reserves to 212 billion cubic feet of gas equivalent.
8. Oil production at Ventura Oil Field commenced in September 2005 at 160 barrels of oil per day adding to Mirage Oil Field production at 180 barrels of oil per day, for combined gross production of 340 barrels of oil per day from estimated recoverable reserves of up to 5.2 million barrels of oil.
9. Completion of Mirage 3D seismic survey in September 2005 with follow on development drilling on Mirage Oil Field in January 2006 planned to increase total Mirage Oil Field oil production to estimated gross 600 barrels of oil per day.
10. Successful drilling of Jingemia-10 production well in Jingemia Oil Field, North Perth Basin to enable planned increase in oil production to up to 5,000 barrels of oil per day (250 barrels of oil per day net to Victoria) in fourth quarter 2005 by operator Origin Energy.
11. Seven development wells planned over the next six months as per the attached drilling schedule.
12. It is anticipated that by the end of calendar 2005, the current and planned Victoria Petroleum net oil production of 450 barrels of oil per day will generate net cash flow estimated at $4.4 million for the year (calculated at US$50 bbl and US$8.50 mcf), an increase of 315% over calendar 2004 net cash flow from oil and gas.
13. 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.

14. Victoria Petroleum N.L. has a 12.1% interest in Samson Oil & Gas N.L which through its 90% shareholding in Kestrel Energy, Inc. has recoverable reserves attributable to Samson of 23.5 billion cubic feet of gas equivalent with a 10% net present value of A$54.5 million. .
15. Cash on hand as at October 31, 2005 of $6.6 million to fund planned exploration and development drilling activities.

JOHN KOPCHEFF
MANAGING DIRECTOR
VICTORIA PETROLEUM N.L.

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