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

Exploration Activity

1. Commencement of drilling in early January 2006 of Eagle North-1 appraisal 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. Victoria Petroleum has a near free carried 20% interest on success in Eagle North-1 drilling and completion for production.
2. Planning commenced for March 2006 exploration drilling program of seven wells in South Australian Cooper Basin permits. Of the seven exploration wells, Tomcat-1 is planned to test 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.
3. Within southern Cooper Basin permit PEL 115, the possible presence of a 20 million barrel oil-in-place Murta resource on the Mirage - Lightning structure interpreted from 3D seismic data, to be tested by the Lightning and Jindivik exploration wells.
4. Commencement of drilling in February 2006 by White Sands Petroleum of 2700 metre exploration well on Reids Dome in Petroleum Lease 231 targeting up to 309 billion cubic feet of gas potential, if gas is present. Victoria Petroleum has a 40% free carried interest through the drilling, testing and completion of the well.
5. Commencement of drilling in March 2006 by White Sands Petroleum of horizontal appraisal well in gas bearing Triassic sands of the North Cherwondah well, Petroleum Lease 171, targeting up to 125 billion cubic feet of gas. Victoria Petroleum has an 8% free carried interest through the drilling and completion of the well.
6. Eight 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 and up to 300 billion cubic feet of gas, if oil and gas is present, as part of 12 well exploration program over next six months as per the attached drilling schedule.

Development and Production Activity

7. Total gross oil production over the quarter from Victoria Petroleum's Australian oilfields was 432,310 barrels with net 32,924 barrels of oil to Victoria Petroleum at an average of 358 barrels of oil per day.
8. Planned development drilling program on Flour Bluff Gas Field, Texas with aim with continuing development success to increase gas production within 12 months of up to 20 million cubic feet per day.
9. Development drilling success in 2005 in the Flour Bluff Gas Field, Texas increased proved probable, possible and potential gas reserves to 210 billion cubic feet of gas equivalent.
10. Oil production at Mirage and Ventura Oil Fields increased to combined gross production of 410 barrels of oil per day from estimated recoverable reserves of up to 4.6 million barrels of oil.
11. Completion of interpretation of Mirage 3D seismic survey with commencement of 3 well development drilling on Mirage Oil Field in late January 2006 with plan to increase total Mirage Oil Field oil production up to estimated gross 1000 barrels of oil per day, if development drilling is successful.
12. Continuation of Jingemia Oil Field production at rates of up to 5,210 barrels of oil per day (260 barrels of oil per day net to Victoria) in fourth quarter 2005 by operator Origin Energy. Total gross oil production during quarter of 400,001 barrels at an average of 4,348 barrels of oil per day (217 barrels of oil per day net to Victoria).
13. Up to ten development wells planned in Victoria Petroleum's Australian and USA oil and gas production properties over the next six months as per the attached drilling schedule.
14. It is anticipated that by the end of calendar 2006 that with successful development drilling, the current and planned future Victoria Petroleum net oil and gas production will generate net cash flow estimated at $12 million for the year (calculated at US$50/ bbl and US$8.50/mcf), an increase over calendar 2004 net cash flow from oil and gas.
15. 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$70-A$80 per barrel.

Other Assets

16. Victoria Petroleum N.L. has an 8.9% 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. The market value of the investment in Samson at 31 December 2005 was $4,417,386.
17. Cash and current investments as at December 31, 2005 of $5,689,776 million to fund planned exploration and development drilling activities, as follows:

JOHN KOPCHEFF
MANAGING DIRECTOR
VICTORIA PETROLEUM N.L.

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