Adelaide, Jan 30, 2007 (ABN Newswire) - Petsec Energy (ASX: PSA) (PNK: PSJEY) is pleased to announce the completion today of its A$12 million capital raising under the Company's Shareholder Share Purchase Plan (SSPP) by the issue of 5 million shares at $2.40 per share.

The SSPP followed the 11.5 million share placement completed in December 2006 also at $2.40 per share. The share placement and SSPP have raised a total of A$39.6 million (before costs) which is being applied towards the Company's 2007 drilling programme.

Petsec is proposing to drill between 14-20 wells in 2007 which if successful could more than double the Company's current oil and gas reserves.

The 2007 programme includes 6-9 wells at the Moonshine Project, Onshore Louisiana, USA, 5-7 wells in the Gulf of Mexico, USA and 2-4 wells in the Beibu Gulf, China.
The expanded 2007 programme follows Petsec's acquisition of an additional 37 leases in the Gulf of Mexico during 2006 giving the Company a total of 51 leases in the Gulf with prospects generated by 3D seismic of over 270 billion cubic feet of natural gas and 32 million barrels of oil.

In the current March quarter, 2-3 wells are planned for the Moonshine Project, onshore Louisiana and 2-3 wells in the Gulf of Mexico at Eugene Island and Mobile Bay. The Moonshine and Mobile Bay drilling is expected to commence in February/March.

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