going north, page-9

No buyers following up at 22c gone soft today?


Feasability results as below are pending.
.........

Port Fairy No1 flows gas from the Flaxman/Waarre Formation

ESSENTIAL PETROLEUM RESOURCES LIMITED 2002-09-18 ASX-SIGNAL-G

HOMEX - Melbourne

+++++++++++++++++++++++++
Following the Essential Petroleum announcement of the recovery of
petroliferous fluid from the Flaxman/Waarre Formation test in the
Port Fairy 1 well (ASX announcement 12 August 2002) the Company has
now received the analysis of the recovered fluid from the test. The
analysis has confirmed the presence of high-end hydrocarbon fractions
observed during the drilling of the well. The analysis also indicated
some contamination indicating that the formation had not properly
cleaned up during the test. On the basis of these results, a decision
was made to review the status of the shut-in pressure of the well.

Essential Petroleum yesterday recorded a flow of gas from the well
approximating 4 to 5 mmcfd through a 2 inch flow line for a period of
about 5 minutes. Initial shut-in and flowing pressure was estimated
at 1000 psi and the flow declined after approximately 5 minutes. The
gas burnt with a dark orange flame indicating the presence of
high-end hydrocarbons. Following shut-in and build up for 30 minutes
the well was reopened and the initial flowing pressure was estimated
to be 500 psi which declined to zero psi in 2 minutes.

The Company believes that the current well completion configuration,
which includes a significant column of brine completion fluid, is
such that a continuous flow of gas at these rates may not be
achievable. Further engineering studies will now be undertaken to
determine the completion configuration which may allow an economic
flow rate from the well.

The recovery of gas with significant light liquid/condensate
fractions from the Port Fairy 1 well in PEP 152 has established the
presence of known hydrocarbons in the Waarre Formation petroleum
system a further 60 kilometers to the west of the recent Santos Ltd
discoveries in PEP 154. The discovery has positive implications for
the prospectivity of PEP 152 and PEP 159 in which Essential Petroleum
holds interests.

Further engineering studies over the next few months on the
significance of this discovery will include an analysis of the
shut-in and build up pressures and an analysis of the permeability
and porosity parameters of the Flaxman/Waarre Formation. These
studies should indicate whether the discovery is commercially viable.

Interests in the Port Fairy No 1 well are as follows:
Essential Petroleum 84.41%
Lakes Oil NL 15.59%

Interest in the test of the Flaxman/Waarre are:
Essential Petroleum 100.00%

Interest Holders in PEP 152 are:
Essential Petroleum 33.9%
Origin Energy Petroleum Pty Ltd 50.51%
Lakes Oil NL 15.59%

J Remfry
MANAGING DIRECTOR

Enquiries: John Remfry
MANAGING DIRECTOR
Phone: (03) 9699 3009
Facsimile: (03) 9699 3110