Gulf Oil and Gas accountACCOUNT

Drilling Report for Primero-1, Reids Dome Gas Project, PL 231, Bowen Basin, Queensland

Source: www.gulfoilandgas.com 7/12/2006, Location: Not categorized

Victoria Petroleum N.L. has been advised by the Operator, White Sands Petroleum Limited that the WSP Primero-1 well on the Reids Dome Anticline has reached the casing point at 119 metres and 13-3/8” casing has been run and cemented. White Sands Petroleum’s extra large 10,000 psi rated BOP has been installed into the casing and pressure tested. A formation pressure test at the base of the casing has been completed and drilling will continue shortly to the next casing point at 300 metres.

Drilling will be carried out by a 2 stage process initially air drilling with a 8-1/2” pilot bit and then a second time to enlarge the hole to 14” so that the next casing of 9-5/8” can be safely installed and cemented.

The number of steps which have been involved in the construction of the top hole portion of WSP Primero-1 are required to ensure that the well can be controlled in the event that gas is encountered at shallow depths. This method which is more extensive than a typical exploration well will also result in a reliable well which can be put into production if an economically viable flow is measured.

Primary targets for Primero-1 are the sands contained within the Permian basal Cattle Creek and the Reids Dome Beds down to the planned total depth of 2,700 metres.

These rock units are considered to be prospective for gas and contained gas shows when last penetrated in AOE-1 drilled in 1954 near the site of WSP Primero-1.

The target Reids Dome Beds have been interpreted to have the potential to contain up to 300 billion cubic feet of gas, if gas is present.

Commenting on the drilling at Reids Dome, Victoria Petroleum NL’s Managing Director John Kopcheff said; “Vicpet is pleased to be a participant in the drilling on the Reids Dome with Primero-1, where Vicpet has a 40% free carried interest.”

“Vicpet is confident that gas flows will be recorded from the well, with the potential to contain a significant gas resource.”

The participant’s interest in Primero-1 and PL 231 are:
Victoria Petroleum 40%
White Sands Petroleum (Operator) 20%
Dome Petroleum 40%

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