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.

One of the targets in the first well is a gas play discovered by a former leaseholder in 1988, while drilling of the second well is contingent on success in the first.

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.

Meanwhile operator Roc Oil has contracted the jackup drilling rig, Nanhai JV, to undertake an exploration and appraisal drilling program consisting of two firm wells with an option to drill up to an additional three wells in the Beibu Gulf Block 22/12 (Roc Oil 40%, Horizon Oil 30%, Petsec Energy 25% and First Australian Resources 5%.).

The drilling program is scheduled for January 2004 to test, in Petsec's estimation, targets in excess of 40 million barrels of unrisked mapped potential of recoverable oil. The joint venture has approved two wells and three further wells contingent on the outcome of the first two.

The first well will test the sizeable 12.7 prospect, located in the mid western part of the 22/12 block. Success in the 12.7 well would be followed by an appraisal well and a well to test the 12.7 west prospect in the adjacent fault block.

The 12.8.3 well will then appraise the 12.8.2 oil discovery made in 1994, which Petsec estimates to contain in the order of 15mbbls of potentially recoverable oil.