Nockatunga is an important cash generator for Voyager in the early stages of the company's growth but it's the Perth Basin action that's stimulating the market.

In late January Voyager announced it had entered into an agreement to earn a 5% in permit WA226, which lies about 200km north of Cliff Head on the same structural trend.

To earn its interest Voyager will partly fund the drilling of the Morangie-1 exploration well. As Morangie lies in over 100m of water a jack-up rig like that used in the shallow water Cliff Head wells is unsuitable. The new operator of WA-226, Origin Energy, is currently looking to source a suitable rig to drill the prospect.

The only previous drilling in the licence area was the Dana Petroleum-operated Livet-1 well in 1996. Livet encountered a 20m residual oil column in a structure that Voyager believes was breached by fault activity.

The Morangie well is aimed at testing a structure that has the potential to host 250 million barrels of oil in place.

Begg is also eager to get back into the group's 20%-owned onshore exploration play in permit EP368, also in the Perth Basin, which has already hosted the Arradale dry hole. "When we farmed into the licence Arradale was already committed to - and we knew it was a very high risk well," he said. "It was not on the 'charge path' but there are a number of sweet spots we want to test.

"Oil has already been proven in the licence from the Premier Oil-drilled Lockyer well, which hit a 34m oil column but was drilled before Voyager's entry into the licence."

The big advantage of an oil find in the licence is the prospect of rapid and cheap cost of development. Australian Worldwide Exploration (AWE) is now operator of the licence area following its purchase a few years ago of all Premier Oil's Australian assets.

To the north of the Perth Basin, Voyager has a 34% interest in permit EP104, which hosts the West Kora oilfield and Point Torment gas discovery. Begg said these Canning Basin fields have considerable promise, particularly Point Torment. Voyager believes the field contains about 80bcf of gas, which would be in high demand in a region desperate for new energy sources.

The potential oil reservoir in West Kora is yet to be determined but a drilling program on both fields is pencilled in for later this year.

Begg said Voyager is also chasing opportunities to bring new production centres into the group. Management has been working on one potential acquisition for the past few months.

"We are looking Australia-wide and internationally, particularly Asia," he said. ""We expect the next acquisition will elevate us up another notch - we want to build a serious company."

Begg is aware the same premiums to share prices are not attached to Asian oil and gas plays as those in regions perceived to be more stable, but any acquisition would be tailored to generate cashflow to allow the group to expand its activities.

HEAD OFFICE: Unit 4, 73 Troy Tce, Daglish WA 6008, Ph: (08) 9388 6722, Fax: (08) 9388 6733

email: info@voyagerenergy.com.au Website: www.voyagerenergy.com.au

DIRECTORS: Peter Leonhardt, John Begg and Ray Barnes.

MARKET CAPITALISATION: $8 million (at press time)

MAJOR SHAREHOLDERS: Jemaya Pty Ltd (5.14%)