The two wells in this current development program, the G-7 and the G-3, have met pre-drill expectations and are expected to be in production by late November, according to Petsec company secretary Geoffrey Fulcher.

“Production from these wells will significantly increase Petsec Energy’s production and cash flow in 2005,” Fulcher said.

Petsec Energy’s current net production is in excess of 20 million cubic feet of gas per day. The current US gas market is very strong, with 12 month forward gas prices in excess of US$ 7.50 per thousand cubic feet.

The Vermilion 258 gas field contains an estimated 23 billion cubic feet of gas. It was discovered by Petsec Energy in January 2004. Production facilities were built and the two exploration wells, the G-1 and G-2, were brought into production in July and August.

The success of the G-3 and G-7 wells will take the number of productive wells on the field to four.

Vermilion 258 G-7 is 114 km south of Cameron Parish, Louisiana in 47 metres of water. Its total depth is 1,354 metres.