Company Information for PETSEC ENERGY LTD

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Company Statement

The Company is listed on the Australian Stock Exchange (symbol: PSA) and has its corporate office in Sydney, NSW, Australia, and operations offices in Lafayette, Louisiana and Houston, Texas, USA.

The Company's objectives will be met by seeking exploration and production opportunities in highly prospective areas where production and development infrastructure is available. Making extensive use of 3-D seismic and subsurface data, the Company will undertake low to moderate risk drilling to discover resources previously overlooked or too small for major producers. This allows rapid development of discoveries, early return of capital and ready access to markets. These operations will be conducted mainly in the USA and Southeast Asia.

Operations and Technology

US Production Assets
Petsec Energy currently has six main offshore production areas in the Gulf of Mexico, USA and four onshore fields in Louisiana, USA.

The Gulf of Mexico is one of the world's premier oil and gas basins, with extensive infrastructure, high oil and gas prices and a ready marked for discoveries. Currently, there are approximately 4,000 producing platforms in the Gulf of Mexico operated by some 150 companies. Production in the US Federal portion of the Gulf accounts for approximately 21% of US natural gas production (just under 5 trillion cubic feet) and about 30% of US oil production (570 million barrels). (source: MMS).

Offshore – Gulf of Mexico, USA
Petsec Energy has six main offshore production areas in the Gulf of Mexico being

• Vermilion 244/258
• Main Pass 18/19
• Mobile Bay Area
• Main Pass 20
• Main Pass 270
• Chandeleur 31/32

Main Pass 20, 270 and Chandeleur 31 were acquired by Petsec Energy in November 2007 as part of a US$105m acquisition of offshore and onshore production assets.

US Exploration Assets
1. Offshore Gulf of Mexico
Petsec Energy has an inventory in the USA of more than 40 prospects, defined by 3-D seismic within the Company's 57 offshore leases and onshore areas. These prospects hold potential for 310 Bcfe of net risked reserves.

The Company's prospect inventory is continually being evaluated, with the most economic prospects to be progressively drilled over the next two to three years.
Petsec Energy will continue to review and bid for further exploration blocks at the bi-annual Gulf of Mexico lease sales conducted by the US Minerals Management Service (MMS). Offshore blocks are typically around 5,000 acres in area and are awarded for a period of five years. Lease blocks can be held for as long as the leases are producing oil and gas.

Amend the last paragraph by removing the words in the first line “in the” before “ Mobile Bay ” and removing the word “Area” after “ Mobile Bay ” and removing the word “all” between “were and acquired.

Petsec's producing fields at Vermilion 258, Main Pass 18/19 and Mobile Bay were acquired as exploration blocks, and were successfully drilled with resulting discoveries then developed and brought into production.

2. Onshore Gulf of Mexico
Moonshine Project

Petsec Energy: 50% working interest
(36% - 37.5% net revenue interest)
Operator: Petsec Energy

Update April 2008 – The Virginia Geason#1 well was spud on 4 February and reached total depth of 3,508 metres. The well encountered 6.4 metres of net pay in the targe Echols sand and been cased and suspended for future completion. The drilling rig will shortly be replaced with a more efficient completion rig which will test the pay zone prior to completing the well.

Petsec entered into a joint venture agreement in December 2004 to acquire exploration rights, including participation in a 3D seismic survey programme, over 240 square kilometres (94 square miles) in St James Parish, onshore Louisiana. This is an area equivalent in size to approximately 12 offshore Gulf of Mexico leases. The project area abuts the south bank of the Mississippi River at College Point approximately 80 kilometres (50 miles) west of New Orleans.

The area has not been subject to 3D seismic acquisition and is highly prospective for both shallow and deep reserves. The survey area is proximal to six fields with approximately 340 Bcf of gas and 7.3 million barrels of oil in numerous sand horizons. During the September 2005 quarter, Petsec completed the field acquisition of 240 square kilometres of 3D seismic data.

Petsec's first well at the Moonshine Project in May 2007 discovered a sub-commercial gas accumulation. Seismic logs were run to allow recalibration of 3D seismic response in this area. Reprocessing of 3D seismic is now underway to better define areas of productive rock before further drilling is undertaken.

Further drilling at Moonshine is anticipated late in the 4th quarter 2007 or 1st quarter 2008.

Terrebonne Parish
Hollywood AVO Trend Prospects – Onshore Louisiana

Petsec Working interest:
20%-23.53% (before casing point), 14.4%-20.00% (after casing point)

Petsec Net Revenue interest:
9.54%-13.25% (before payout), 8.55%-11.92% (after payout)

Operator: Red Willow Offshore LLC

During 2007, Petsec Energy drilled two wells at Terrebonne Parish: the first well, CL&F #28-1 to test the Acapulco Prospect encountered approximately 40 gross feet of potential hydrocarbon bearing sand in two zones, however sand quality was poor and did not justify completion. Costs of US$2.8 million have been expensed.

The second well, the CL&F#30-1, testing the Triple Play prospect, did not reach the proposed total depth of 13,606 feet due to deteriorating hole conditions. The well was temporarily abandoned after reaching a measured depth of 13,163 feet, and the rig was released. The well did not reach the planned target depths, and in the Company's view it is unlikely that the AVO anomaly has been tested. While an LWD tool was used, electric line logs could not be run.

The well data is being reviewed in the context of successful Hollywood Sand AVO discoveries made in this area. The JV is currently considering whether to sidetrack the well or to plug and abandon. Future drilling of the remaining prospects in the Terrebonne Parish Project is suspended, pending the completion of this review.

China:
Beibu Gulf, Block 22/12
Work is continuing on the front-end engineering and design studies (FEED) and overall development plan (ODP) for the 6-12/6-12 South oil fields for submission to Chinese authorities.

The proposed development is forecast to cost between US$120-150 million (100%) with Petsec's share US$14.7-18.4 million (12.25% assuming CNOOC back-in) and will comprise a hub facility at the 6-12 South field with capacity of 25-30,000 barrels of oil per day into which other discoveries made close to the field can be tied. The feasibility study envisages a well head platform with a floating production storage and offloading vessel (FPSO). The design will also allow for expansion to accommodate the development of the other four oil discoveries in the south of Block 22/12.

Geographical Spread

China, Mexico, USA

Board of Directors and Key Management

Terry N. Fern	Chairman and Managing Director
David A. Mortir	Non-Executive Director
Peter E. Power	Non-Executive Director
Craig H. Jones	Company Secretary
Fiona A. Robertson	Chief Financial Officer
Craig H. Jones	General Manager, Corporate

Company Address Level 13, 1 Alfred Street Sydney, New South Wales, Australia 2000 Telephone: +61 2 9247 4605 Facsimile: +61 2 9251 2410 Website: http://www.petsec.com.au

Major Shareholders

DEN DUYTS CORPORATION PTY LTD	18,312,722	11.88
NATIONAL NOMINEES LIMITED	10,260,003	6.65
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED	10,240,913	6.64
CITICORP NOMINEES PTY LIMITED	8,140,879	5.28
CANNING OIL PTY LTD	6,472,744	4.20

Most Recent Statement

17/08/09 - Notice of June 2009 Half Year Results
05/03/09 - Resignation of General Manager-Corporate and Joint Co Sec
22/01/09 - December 2008 Quarterly Report
19/01/09 - December Quarterly Results Teleconference
18/11/08 - Pipeline Maintenance to Cause Temporary Shut In of CA 31/32 Field
23/09/08 - Petsec awarded two new leases North Padre 929 and 934 Gulf of Mexico, USA