Offshore staff

SYDNEY, Australia -- Petsec Energy Ltd. has signed an agreement with US-based LLOG Exploration to acquire to acquire assets from the company for $110 million. This proposed transaction will double Petsec's reserves and production in the Gulf of Mexico and onshore onshore Louisiana.

The proposed acquisition includes:
• Interest in three offshore producing gas fields in the Eastern GoM: Main Pass block 20 and 270 and Chandeleur block 31/32.
• Interest in four onshore gas fields in Louisiana.

Under the proposed agreement, Petsec Energy will have a majority working interest in all but one of the fields and will be the operator of two of the three offshore and two of the four onshore fields.

The acquisition is expected to close in November.

10/12/2007