PILOT ENERGY LIMITED — Regulatory Filings 2007

Aug 12, 2007

VICTORIA PETROLEUM N.L. ABN 50 008 942 827

Incorporated in Western Australia

13 August 2007

Announcements Australian Stock Exchange Limited Level 4, 20 Bridge Street SYDNEY NSW 2000

PRODUCTION TESTING OPERATIONS REPORT FOR WEST FLORENCE-1, WEST FLORENCE PROJECT AREA, COLORADO, USA

Victoria Petroleum N.L. has been advised by the operator Mountain Petroleum Corporation that the drilling rig on location at West Florence-1 has carried out production testing operations over the Upper Bench Dakota Sand and the Muddy J Sand. During the testing operations on these zones, additional gas was recovered at a rate too small to measure with accompanying water.

Further production testing was carried out on the Codell Formation and the Niobrara Formation with a small quantities of oil recovered. Given the encouragement of the oil recovered from the Codell and Niobrara zones, these zones will be fracture stimulated during the week, as is the usual practice to determine the oil flow rates that these zones can produce.

The adjacent oil producing wells of the Florence Oil Field require fracture stimulation to produce commercial quantities of oil.

The total gross leasehold of 25,000 acres provides the participants in the West Florence project with a significant leasehold position.

West Florence-1 is the first well to be drilling in the West Florence Oil and Gas Project and its associated leasehold of 12,000 acres located in the Florence sub basin of the Denver basin. The leasehold is approximately 160 kilometres south of Denver, Colorado, USA. The project area is to the west of the Florence Oil Field which produced approximately 15 million barrels of oil from fractured shales of the Pierre Formation in the 1940’s.

The petroleum potential resource for the West Florence Project is estimated to be in the order of 100 – 200 billion cubic feet of recoverable gas in the sands of the Muddy J and Dakota Formation and additionally around 15 million barrels of recoverable oil cumulatively from the Pierre, Niobrara and Codell formations, if oil and gas are present.

Commenting on the testing results observed so far, Victoria Petroleum managing director John Kopcheff said:

“The oil and gas seen while testing these zones, while not commercial without fracture stimulation, confirms the presence of oil and gas in the target section and in the general West Florence project area.”

“Victoria Petroleum looks forward to the test results from the fracture stimulation of the Codell and Niobrara zones in the West Florence-1 production testing program “

36[TH ] 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

The participants in the drilling of West Florence-1 and the West Florence Oil and Gas Project and their respective interests through their wholly owned subsidiaries are as follows;

Mountain Petroleum Corporation. (Operator) 25% Victoria Petroleum N.L. (ASX code: VPE) 25% Fall River Resources Limited (ASX code: FRV ;TSX.V code FRR) 15% Adelaide Energy Limited 15% North American Oil Gas Energy Pty Ltd 5% Private American Interest 15%

JOHN KOPCHEFF

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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, MPES, with 36 years experience in petroleum geology and geophysics.

For information on Victoria Petroleum N. L. drilling activities visit our website at www.vicpet.com.au

West Florence Oil and Gas Project Colorado, USA

• West Florence Oil & Gas Project – 200 BCFG & 15 MMBO (P10)

• � multiple gas & oil targets to 2,100 metres

• West Florence-1 � large acreage position of 25,000 acres

• � testing multiple oil& gas shows in West Florence-1 in August 2007

• � VPE interest – 17.5% - 25%

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