Spudded on December 11, the Main Pass 19 G-7 exploration well had reached total measured depth of 2267 metres and intersected four productive sands with an estimated 20-23 metres of net gas pay.

The sand thickness of the primary objectives was thinner than expected but this was partially offset by the intersection of additional sands that were not included in the pre-drill prognosis.

Production casing is currently being run in the well prior to it being suspended for future production.

This well is the first in a program of four wells to be drilled from the Company’s recently installed Main Pass 19 platform – located in water 12 metres deep 128 kilometres south-east of New Orleans.

The drilling program will test total mapped potential of roughly 15 to 18 billion cubic feet equivalent (Bcfe) of gas net to Petsec Energy.

Petsec is the operator and has a working interest of 55% and net revenue interest of 45.83%.

Meanwhile, commissioning work to bring the Main Pass 19 field into production is continuing although adverse weather conditions have resulted in further minor delays. Production is now expected to start during the second week of January 2006.