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Heres the last report.................

ESSENTIAL PETROLEUM RESOURCES LIMITED QUARTERLY EXPLORATION REPORT FOR THE THREE MONTH PERIOD ENDED 31 MARCH 2005 Summary Essential Petroleum Resources has acquired a 20% working interest from Beach Petroleum Limited in the South Australian petroleum exploration licence, PEL 27. The farmin to PEL 27 strengthens Essential Petroleum’s relationship with Beach Petroleum and both companies now share interests in four Otway Basin permits, the others being VIC/P46, PEP 150 and PEL 72. PEL 27 lies on the northwest flank of the Penola Trough, northwest and updip of the Katnook, Haselgrove and Ladbroke Grove gas fields. The licence is ideally positioned to trap hydrocarbons migrating out of the trough as demonstrated by the recovery of oil in Sawpit 1 and oil flow to surface at Killanoola DW 1, both wells drilled within PEL 27. An exploration well to test the Cowrie Prospect is planned for mid-year. Essential Petroleum believes the Cowrie Prospect may contain up to 4 million barrels of recoverable oil Planning for the Pritchard 1 exploration well in PEP 151 continues however rig availability has forced the anticipated spud date to the September quarter. The actual timing of the well is subject to finalisation of the Native Title Production Agreement for the permit and rig availability. The primary target of the Pritchard Prospect is the Late Cretaceous section where reservoir-seal combinations within the Belfast Mudstone are interpreted. A potential mapped volume of 14 mmbbls recoverable oil or 22 BCF recoverable gas has been calculated for this unit, with an additional 4.2 mmbbls recoverable oil calculated for the Tertiary Pebble Point Formation. Processing of the OEP04 2D offshore seismic survey acquired in VIC/P46 and VIC/P50 in November 2004 is underway and should be completed by the end of April 2005. The survey was designed to better define leads and prospects mapped in the two offshore permits and involved 719 line km in VIC/P50 and 390 line km in VIC/P46. Mapping of the new offshore seismic data set will commence in the June quarter 2005 and should be completed in the September quarter 2005. The Company is continuing its farmout campaigns in VIC/P46, VIC/P50 and PEP 151. During the quarter no commercial hydrocarbons were discovered or acquired by the Company. PEP 151 - 100% Onshore Otway Basin Victoria Interpretation of the Nelson 2D/3D seismic survey and all other available seismic data over the Portland Trough has been undertaken. The interpretation has confirmed the presence of closures at both the Late Cretaceous and Tertiary target horizons. The Pritchard Prospect provides a very attractive test of the Late Cretaceous section in the Portland Trough. The prospect is mapped at the top of a reflector package interpreted to be reservoir-seal combinations within the Belfast Mudstone. The trap is a fault independent closure that predates the main Tertiary hydrocarbon generation phase. In addition an apparent flat spot associated with a deeper interpreted Flaxman Formation may be a direct hydrocarbon indicator.

The Pritchard Prospect has a potential mapped median volume of 14 mmbbls recoverable oil or 22 BCF recoverable gas at the interpreted intra-Belfast horizon. A smaller fault dependent closure mapped on the Pebble Point horizon provides a secondary target with a potential mapped volume of 4.2 mmbbls recoverable oil. Planning for the Pritchard 1 well continues. Century Rig 7 has been contracted by Origin for a multi-well program in the onshore Otway Basin that is planned to commence in June quarter 2005. Essential Petroleum has reserved a slot in the program for drilling the Pritchard 1 well, contingent upon the completion of the Native Title Production Agreement for the permit. It is anticipated that the Production Agreement will be finalised by June 2005, allowing Essential Petroleum to take up the rig slot in the September quarter 2005. A geochemical study of the permit utilising Gore technology has been completed. The raw data will be statistically compared to known Otway Basin oil accumulations and the results used to assist the risking and ranking of prospects and leads in the permit. A PEP 151 farmout brochure has been prepared and distributed to targeted companies and data presentations to interested parties continues. PEP 150 - 50% Onshore Otway Basin Victoria No further technical work has been undertaken in the permit. PEP 152 - 84.41% Onshore Otway Basin Victoria The Port Fairy 1 well has been converted to a water bore for the property owner. Restoration of the Killarney 1 well site has been completed. PEP 159 - 100% Onshore Otway Basin Victoria Restoration of the Findra 1 well site has been completed. PEL 72 - 50% Onshore Otway Basin South Australia Due to difficulties encountered in acquiring good quality seismic data within PEL 72, a scoping document is being prepared to conduct a multi disciplinary seismic acquisition study. The study will be conducted with a view to designing seismic programs that will provide good quality data with quantitative AVO effects at the prospective horizons. Initial contact has been made with industry and academic experts. PEL 27 - 20% Onshore Otway Basin South Australia Essential Petroleum Resources has acquired a 20% working interest from Beach Petroleum in the South Australian petroleum exploration licence, PEL 27. PEL 27 covers 240 square kilometres on the northwest flank of the Penola Trough, a proven petroleum system. PEL 27 is located updip from the Katnook, Haselgrove and Ladbroke Grove gas fields and is ideally positioned to trap hydrocarbons migrating out of the Penola Trough hydrocarbon kitchen. The permit is particularly oil prospective as demonstrated by the recovery of oil from Sawpit 1 and the oil flow to surface at Killanoola DW 1, both wells drilled in PEL 27.

Essential Petroleum’s participation in PEL 27 will commence with the drilling of the Cowrie Prospect. Cowrie is a robust structure similar in style to the Killanoola oil discovery, whilst offering improved reservoir and oil quality, and an excellent seal. Drilling of the Cowrie 1 well is planned for some time between May and September this year as part of the multi-operator Otway Basin drilling program using Century Rig 7. Essential Petroleum believes the Cowrie Prospect may contain up to 4 million barrels of recoverable oil. Furthermore, a discovery at Cowrie will confirm the Sawpit Sandstone as an exciting new reservoir target and provide the Joint Venture with immediate other opportunities in PEL 27. Following assignment of the interest to Essential Petroleum, participants in the PEL 27 Joint Venture will be: Beach Petroleum Limited 30% (Operator) Origin Energy Limited 50% Essential Petroleum Resources Limited 20% An overriding royalty of 0.75% of the wellhead value of any hydrocarbon production is payable to Cluff Resources Pacific NL, a former permit holder. The farmin to PEL 27 strengthens Essential Petroleum’s relationship with Beach Petroleum and both companies now share interests in four Otway Basin permits, the others being VIC/P46, PEP 150 and PEL 72. VIC/P46 - 57.5% Offshore Otway Basin Processing of the OEP04 2D seismic data acquired in November 2004 is underway and will be completed during quarter 2, 2005. The survey, run contiguously in VIC/P46 and VIC/P50, was designed to further detail the Kepler/Bernoulli trend and shelf margin targets. A total of 390 line kilometres of seismic data were acquired in VIC/P46. The highly variable water depths at the shelf margin significantly impact seismic time sections. Hence Essential Petroleum is processing the OEP04 seismic lines as depth sections. Lines processed to date show improved seismic imaging of the target Waarre Formation reflectors. Reprocessing of 239 line km of vintage seismic data to produce depth sections was completed in quarter 4, 2004. Interpretation of the new seismic data set comprising the OEP04 lines and depth reprocessed vintage lines will commence when processing of the OEP04 data is complete. The Callister 1 well, drilled by Santos in the adjacent offshore permit in quarter 4 2004, targeted Late Cretaceous reservoirs in a structure mapped on the eastern end of the Cape Bridgewater High. Whilst Callister 1 was reported as having gas shows, information regarding why the shows were not commercial has not been released. The Kepler and Bernoulli prospects in VIC/P46 also lie on the Cape Bridgwater High.

Essential Petroleum believes that the failure of Callister 1 may be at least partially attributed to reservoir sand distribution, in particular the better development of reservoir sands away from crestal locations. This has been demonstrated elsewhere in the Otway Basin with the erosion of Waarre C sands from the crest of the Casino structure and the pinching out of Thylacine Sandstone Member sands on the flank of the Geographe North structure. Work completed by the Essential Petroleum technical team in VIC/P46 indicates that Late Cretaceous reservoir sand distribution is also structurally influenced in this area. Whilst limited information is available, our interpretation of the Callister 1 results suggest that 3D seismic may be necessary to properly map Late Cretaceous reservoir sand distribution. Hence 3D seismic may be required in VIC/P46 to confirm the distribution of reservoir sands and mature drillable prospects. The Company is continuing its farmout campaign of the permit. VIC/P50 - 100% Offshore Otway Basin As stated above, processing of the OEP04 2D seismic data acquired in November 2004 is underway and should be completed during quarter 2, 2005. The 718 line kilometres of seismic data acquired in VIC/P50 were designed to define Late Cretaceous tilted fault block prospects and the Descartes and Henty low stand fan prospects along the shelf margin. Depth reprocessing of 405 line km of vintage seismic data was completed in quarter 4,2004. Interpretation of the new seismic data set comprising the OEP04 lines and depth reprocessed vintage lines will commence when processing of the OEP04 data is complete. ESSENTIAL PETROLEUM RESOURCES LTD PERMIT EXPENDITURE SUMMARY FOR THE QUARTER ENDED 31 MARCH 2005* Permit Essential Seismic Geological & Environment, Drilling Total Number Petroleum Survey Geophysical Native Title & Expenditure Interest Expenditure Studies Permit Maint PEP 151 100.00% $ 6,820.00 $ 90,052.00 $ 1,950.00 $ 9,223.00 $ 108,045.00 PEP 150 50.00% $ - $ - $ - $ - $ - PEP 152 84.41% $ - $ - $ 157.00 $ - $ 157.00 PEP 159 100.00% $ - $ - $ 157.00 $ 25,889.00 $ 26,046.00 PEL 72 50.00% $ - $ - $ 760.00 $ - $ 760.00 VIC/P46 57.50% $ - $ - $ - $ - $ - VIC/P50 100.00% $ 99,336.00 $ 2,791.00 $ - $ - $ 102,127.00 PEL27 20.00% $ - $ 287.00 $ - $ - $ 287.00 $ 106,156.00 $ 93,130.00 $ 3,024.00 $ 35,112.00 $ 237,422.00 * This statement has been prepared based on accrual accounting principles John Remfry, Managing Director, Essential Petroleum Resources Limited has prepared this Quarterly Exploration Report.

Cash at end of quarter $3383000
Estimated cash outflows for next quarter 250000

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