Wire line logs, sidewall cores and downhole wire line formation sample testing run over the weekend indicate a gross oil column of 17m extending from 1,320-1,337m with a potential 6m of net pay.

It now appears that the drill stem test was only partially successful as the tool became blocked shortly after it was opened.

Before the tool became blocked, an initial oil influx into the drill pipe at a rate of 500 barrels of oil per day was observed. This rate is greater than the rate of 150 barrels of 54 API oil per day initially reported.

“Victoria Petroleum N.L. is very pleased with the wire line results for the Mirage-1 well and the new interpretation of the earlier drill stem test that recovered oil,” Victoria Petroleum managing director John Kopcheff said.

“These results indicate that the Mirage oil discovery is much better than we originally thought.”

The determination of the recoverable oil reserves for the Mirage Oil Field will be subject to the production testing results and further development drilling on the Mirage oil Field.

The next operation to take place at Mirage-1 will be the completion and production testing of the 17m oil column in the Murta Formation, which will take place through the cased hole from 11 January 2005, Victoria Petroleum says.

“With our Ventura Oil Field discovery 5 kilometres to the west and now the Mirage Oil Field discovery, it appears that there is a highly prospective Murta oil trend present in the southern part of the permit,” Kopcheff said.

“This trend extends from west to east, from the Almonta Structure, shared with Beach Petroleum, through to Victoria Petroleum’s Ventura-Mirage-Lightning structures. We await with interest the reported drilling planned by Beach Petroleum in early 2005 on the portion of the Almonta prospect within the adjacent Beach Petroleum-operated permit.”

With the Mirage Oil Field discovery, Victoria Petroleum has achieved a 50% oil discovery success rate with the 2004 drilling program in PEL 115. The South Australian Cooper Basin program will continue to be a core area of focus for the company with up to 11 wells to be drilled over the next 3 years, with six wells planned to be drilled in 2005.