The well is planned to commence drilling shortly, having potential reserves of around 16 million barrel oil target while Vesta-1, in the offshore Carnarvon Basin, would be drilled in March testing a recoverable target of 23 million barrels of oil.

The successes achieved by peers in the region has given the company confidence that it will achieve similar success with its five confirmed wells in its 2004 drilling program, which could run to as many as nine wells if conditions are right.

VicPet has a 40% free carried interest in two wells in the PEL 104 Block and interests in three wells in PEL Blocks 111 and 115 and is hoping the 45% wildcat success rate being enjoyed by Beach, Stuart, Cooper Energy and crew will be mirrored in its wells.

The company is also confident that its April 2004 development drilling program in the North Perth Basin - in the Jingema oil field - should achieve an oil production increase to around 4,000 barrels of oil per day in the second quarter of 2004.

Two other Surat wells are confirmed, Don Juan, testing potential recoverable targets of 4 million barrels of oil in April and a 12 million barrel prospect in Rookwood South.

All these programs are being funded with around US$3.5 million cash in hand.