Production casing will be set prior to suspending the well for future completion.

The well is located 105km south of Cameron Parish Offshore Louisiana in the Gulf of Mexico with Petsec maintaining a 100% working interest.

Petsec will now drill a second well from this location, the Vermilion 258 #2 well, to test four sands with an unrisked mapped potential of 14.2 billion cubic feet of gas net to Petsec. The #2 well is expected to spud within the next 6 - 9 days.

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.