The well is being drilled through the caisson which, if successful, will allow for the well to be suspended for future completion.

The well is located in water depth of 42m and is designed to test 6 target sands with a total unrisked mapped potential of 21 bcf (gross) (17.5 bcf net) of natural gas.

Petsec Energy has a 100% working interest and 83.33% net revenue interest in the Vermilion 258 #1 well.

Overall the company is planning to drill two wells offshore Louisiana in the Gulf of Mexico Vermilion 246, 257, 258 permits to test 36 billion cubic feet (bcf) of unrisked mapped potential gas (30 bcf net to Petsec) in multiple targets.

Should the wells be successful construction of facilities would begin early in 2004 with production expected by mid-year.

Following production start-up, a further 21bcf (19bcf net to Petsec) of unrisked mapped potential is expected to be drill tested in the second half of 2004. The three leases have multiple targets in sands known to be productive in the area.