The new level of oil production was achieved by placing the Mirage-1 oil well on artificial lift with a beam pump. The company achieved a stabilised flow rate on pump this week of 415 barrels per day.

The Ventura-1 oil well, also on artificial lift with a beam pump, is currently producing 65 barrels of oil per day.

Meanwhile, VicPet says interpretation of of the 3D data set suggested Mirage-1 could be part of a larger feature covering about 20 square kilometres that includes the Lightning and Jindivik prospects 5km to the northeast.

“Further exploration drilling is required to confirm this possibility and this will take place after the three Mirage development wells, with the drilling of the Lightning-1 and Jindivik-1 exploration wells," VicPet managing director John Kopcheff said.

"The data also suggested the oil/water contact encountered in Mirage-1 is below what has been mapped as the structural closure of the

Mirage feature.

"This means that the Mirage Oil Field has either a stratigraphic component or the Mirage Oil Field is larger than first mapped."

The initial three development locations and two exploration wells for the Mirage Oil Field have been approved by the PEL 115 Joint Venture, which also includes Impress Ventures, Roma Petroleum and Entek Energy.

With the Hunt Rig-3 currently moving to the Mirage-2 well site, drilling is expected to begin on or about January 29.

Upon a successful three-well development plan, VicPet said gross oil production for the Mirage Oil Field was expected to reach an estimated 1,000 barrels of oil per day by mid 2006.

The Mirage Oil Field is interpreted to contain recoverable oil reserves between 1.3 million barrels and 3.6 million barrels.

Participants and their interests in the Mirage and Ventura Oil Fields and PEL 115 are:

Victoria Petroleum NL (operator and 40%), Impress Ventures Ltd (27.5%), Roma Petroleum NL (20%) and Entek Energy Ltd (12.5%)