Petsec Energy Announces First Production from Hummer Gas/Oil Field Development Offshore Louisiana, Federal Waters, U.S.A.

Petsec Energy (the “Company”) is pleased to announce the commencement of production from the Company's Hummer Development in the Gulf of Mexico, offshore Louisiana, USA. Following the successful installation of the Main Pass 270 “B” platform deck facilities during the first half of November, the well was brought into production on the 21st November 2017. The Company will update the market in the coming weeks on the well and production performance as the operator ramps up production to target rates.

The Hummer Gas/Oil Field, extends over Main Pass Blocks 270, 273 and 274, in the Gulf of Mexico, offshore Louisiana, USA. The Hummer Project discovery well, Main Pass 270 #3 BP1, is located in U.S. federal waters approximately 50 miles southeast of Venice, Louisiana.  The water depth at the location is approximately 215 feet.  The well was drilled, logged and temporarily suspended in late 2015. The Main Pass 270 “B” platform jacket was installed over the well, and the well was completed and production tested in late 2016. The well was tested over a 48 hour period. Test rates recorded over the last three hours of the test period averaged 19.88 million cubic feet of gas per day (MMcfpd) and 396 barrels of oil per day (bopd) on a 16/64th inch choke with a flowing well head pressure of 9753 psi. The test rates continued to increase over the final flow period of the test.

Well logs indicate additional potential reservoirs in the well. These untested sands will be targets of future drilling on the Hummer project. Significant production occurs for similar reservoirs along trend with peak production rates from those intervals exceeding 25 MMcfpd and 1,000 bopd.

The initial design capacity of the “B” platform facilities is for production rates of up to 50 MMcfpd plus 1,000 bopd which will accommodate the discovery well, Main Pass 270 #3 BP1. These facilities and designed expansion space available on the deck will allow for production capacity to be expanded to accommodate increased production from additional wells drilled from the “B” platform and proximal well head platform.

Participating working interests in the well are:

Petsec Energy Inc.                                  12.5% (10.7431% Net Revenue Interest)

Other Private Companies                        87.5%

Details of the Well:

Well Name:                                            OCS-G-22812 #3 BP 1

Type of Well                                           Exploration/ Producer

Location of Well:                                    Offshore Louisiana, Federal Waters

By-pass TD:                                           14,342 feet MD/14,300 feet TVD

Operator:                                               Castex Offshore, Inc.

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Petsec EnergyGulf Of MexicoLouisianaOffshoreHummer Gas FieldHummer Oil FieldFirst Production

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