These wells will be additional to Petsec Energy’s other announced program of two

wells at Vermilion 258 to commence in September, followed by the drilling of one

to three wells at Main Pass 19 commencing late 2004.

Petsec said today that its production for the current half year was expected to rise by more than 50% on the back of the recent production start-up from the Vermilion 258 gas field.

The Vermilion field was discovered late last year and has provided a significant boost to Petsec's total net production. Currently from its Gulf of Mexico operations Petsec is producing around 24.3 million cubic feet of gas equivalent (MMcfe) per day.