The shoot, restricted to existing roads and tracks through the park, was given the green light after extensive negotiations with Parks Victoria and the Victorian government. Approval to conduct the survey followed strict environmental and operational guidelines.

Around 106sq.km of 3D data was acquired together with almost 255 line kilometres of 2D data. Test processing of the data set is being undertaken with a view to determining the final processing sequence and parameters.

Negotiations on a Production Consent agreement with the Gunditjmara People are also proceeding. These negotiations follow on from the successfully negotiated Exploration Consent Deed and will determine the conditions under which the company will operate if hydrocarbons are found in the permit.

During the quarter the results of drilling of the Koroit West No 1 well in PEP152 and the results of drilling the Banganna No 1 well in PEP 159 were evaluated. Although both wells failed to intersect commercial hydrocarbons the results are being incorporated into further seismic mapping of the permits.

The results from the wells suggest that a valid petroleum system exists in the early Tertiary Pebble Point and Pember Formations and in the Paaratte Formation. Seismic mapping will concentrate on these formations as well as the older Waarre Formation play.

Interpretation of the 740km 2D marine seismic survey, which was acquired in the offshore permit Vic/P46 in November 2002, is underway. The initial results indicate the existence of several large structures on the shelf area of the permit.

However, during the quarter no commercial hydrocarbons were discovered or acquired by the company.