36TH FLOOR, EXCHANGE PLAZA, 2 THE ESPLANADE, PERTH, WESTERN AUSTRALIA 6000 TELEPHONE: (08) 9220 9800, FACSIMILE: (08) 9220 9801, EMAIL: admin@vicpet.com.au WEBSITE: www.vicpet.com.au

CORRESPONDENCE TO PO BOX Z5441, ST GEORGES TERRACE, PERTH, WESTERN AUSTRALIA 6831

4 December 2009 Announcements ASX Limited Level 4, 20 Bridge Street SYDNEY NSW 2000

COOPER BASIN OIL & SURAT BASIN COAL SEAM GAS EXPLORATION & DEVELOPMENT REPORT, 1 DECEMBER 2009

Attached is the Victoria Petroleum N.L. “Cooper Basin Oil & Surat Basin Coal Seam Gas Exploration & Development Report, 1 December 2009”.

JOHN KOPCHEFF MANAGING DIRECTOR VICTORIA PETROLEUM N.L. Information in this report was completed by the Managing Director of Victoria Petroleum N.L, J T Kopcheff BSc (Hons Eco.Geol), FAIMM, MAAPG, MSPE, MPESA, with 38 years experience in petroleum geology and geophysics. For information on Victoria Petroleum N. L. drilling activities visit our website at www.vicpet.com.au

VICTORIA PETROLEUM N.L. A.B.N 50 008 942 827 Incorporated in Western Australia

36TH FLOOR, EXCHANGE PLAZA, 2 THE ESPLANADE, PERTH, WESTERN AUSTRALIA 6000 TELEPHONE: (08) 9220 9800, FACSIMILE: (08) 9220 9801, EMAIL: admin@vicpet.com.au WEBSITE: www.vicpet.com.au

CORRESPONDENCE TO PO BOX Z5441, ST GEORGES TERRACE, PERTH, WESTERN AUSTRALIA 6831

Cooper Basin Oil & Surat Basin Coal Seam Gas

Exploration & Development Report

1 December 2009

Growler Oil Field Facilities, Western Margin Oil Project, Cooper Basin, South Australia Production capacity of 2,000 barrels of fluid per day

VICTORIA PETROLEUM N.L. A.B.N 50 008 942 827 Incorporated in Western Australia

Dear Shareholder Victoria Petroleum N.L. (VPE) is pleased to advise you that VPE is now entering the next phase of its growth as an independent Oil and Coal Seam Gas company. Evidence of this is provided by the nearly three fold increase in the market capitalisation of your Company over the last 12 months from $50 million to $130 million. Oil Assets The spring board for this next growth phase is to come immediately from your Company’s increase in interest to 60% in the highly prospective Cooper Basin Western Margin Oil Project in South Australia, through the November 2009 acquisition of Permian Oil and Gas Pty Ltd. The planned accelerated development and bringing into production of undeveloped existing oil discoveries is expected to provide over FY 2009, on a risked basis, an estimated 360% growth in oil sales net revenue to $20 million for FY 2010, increasing to an estimated 600% growth to $34 million for FY 2011. Exploration activity will also increase, and in the event of success, offers the potential for further increases in oil sales net revenue and reserves to the stated estimates above. VPE’s current exploration success rate of 67% combined with the future drilling of some six 3D seismically defined exploration and appraisal targets over the next 12 months offers strong encouragement for future new oil discoveries.

VICTORIA PETROLEUM N.L. A.B.N 50 008 942 827 Incorporated in Western Australia

Coal Seam Gas Assets While this accelerated oil exploration and development program is taking place, appraisal and development of VPE’s Coal Seam Gas (CSG) interests in the Surat Basin Queensland with our operators QGC Limited (QGC), a BG Group business and Bow Energy Limited will continue.

Flaring Gas at Don Juan Coal Seam Gas Project, Surat Basin, Queensland For the Company’s CSG resources being developed in joint venture with QGC, relative to our peers in the CSG sector, it is very significant that your company is targeting its CSG reserves to be sold as high value Liquefied Natural Gas (LNG) into the Asian markets. To achieve this initial technical and marketing agreements are in place between your Company and QGC Your company’s share of certified CSG reserves in the Don Juan CSG Project in joint venture with Bow Energy is also important. The commercial development of VPE’s CSG reserves will provide in the future significant long term net revenue for VPE. In the short term, VPE’s oil interests will provide significant cash flow and growth in the Company’s value. The development of VPE’s CSG resource with QGC and Bow provides a significant longer term reserves and net revenue source. Summary The continuation of the success VPE has had to date with its twin focus strategy on oil in the Cooper Basin and CSG in Queensland provides a bright future for Victoria Petroleum N.L. A recent RBS Morgans research note on VPE is attached. Your support of the December 2009 Share Purchase Plan will ensure that your Company can carry out an accelerated exploration and development drilling program in its Cooper Basin oil and Surat Basin CSG assets. We look forward to the next phase of growth of your Company as an independent Oil and Coal Seam Gas Company and all the benefits that may bring. Yours sincerely, VICTORIA PETROLEUM N.L. JOHN KOPCHEFF Managing Director

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