At St James Parish, onshore Louisiana, where Petsec has a 50% working interest and a minimum 36% NRI, the company has entered into a joint venture for a new 3D seismic survey over about 92 square miles. Petsec is operator in this project.

“3D seismic has never been acquired in the area which has high prospectivity for both shallow and deep prospects, the company said. “The survey area is close to four fields which have produced approximately 180 BCF of gas.”

Data acquisition is expected to commence early in 2005 and could lead to drilling late 2005 or early 2006.

Petsec is also involved in another onshore Louisiana project but has declined to reveal the location of the prospect.

Petsec is putting up cash but was coy regarding the identity of the operator or the location, as it is trying to lock up more land.

"It will be revealed when we make a discovery," Petsec chairman, managing director and CEO Terrance Fern told EnergyReview.Net in November.

"We don't want to give away too much at this stage as we only have 1000 acres and are negotiating to acquire more."

Petsec is earning a 17.5% net revenue interest in this project. The first well is drilling ahead and is expected to reach target sands in two weeks. The second well, which will test a separate structure, has spudded and is expected to reach the first target sands towards the end of February.

But the bulk of Petsec’s interests are offshore.

The Vermillion 258 field, in which Petsec has a 83.33% net revenue interest, now has three wells in production following completion of the G-7 well which was drilled in October 2004. Current net production is about 20 million cubic feet of gas per day.

Completion for production of the G-3 well, which was also drilled in October, was delayed by down-hole mechanical difficulties coupled with bad weather. Petsec said it anticipates being able to finish completion operations on the G-3 well by mid-January 2005.

At Main Pass 19, where Petsec has a 45.83% net revenue interest, a platform deck has been purchased and design for construction of the jacket and deck refurbishment is currently being undertaken. The rig contracted to drill up to three wells at Main Pass 19 is now expected to be available in late January 2005.

Petsec has a 46.125% to 82.33% net revenue interest at West Cameron 343/352. Four wells are on production at this field. Current net production is about 4.5 million cubic feet of gas per day, mainly from the A-14ST, A-17 and A-18 wells.

At Ship Shoal 184/191, where Petsec has a 7% overriding royalty interest, production resumed following a change of ownership of the leases. Currently two wells are on production. The fields were shut in for much of 2004.

Petsec shares dropped 4% yesterday, falling by five cents to close at $1.20.