Release: Oseil oilfield completes first oil lifting

The following is the release from Kalrez Energy Limited, a 2.5 percent shareholder in the Seram Joint Venture that operates the Oseil oilfield. The major shareholder, and

Operator of the JV, is KUFPEC (Indonesia) Limited with 97.5 percent.

Production from the Oseil oilfield commenced on December 30th 2002, with processing taking place through a Temporary Production System (TPS) nominally rated to approximately 12,000 barrels per day throughput.

The TPS facility is a temporary process facility to be utilized until the permanent facilities currently being installed are completed.

Current expectations are that the permanent facilities will be available during April 2003.

REPORTING PERIOD	From midnight 26/01/2003	To midnight 02/02/2003
Oil produced for the period	50,592	barrels of oil
Average daily production for the period	7,227	barrels of oil
Cumulative Oil produced	250,316	barrels of oil
Oil sold during the period	0	barrels of oil
Oil in stock	250,316	barrels of oil

The above represent total production from the Oseil oilfeld as reported by the Operator. Kalrez entitlement is 2.5 percent of this production after deducting operating costs and Indonesian government entitlements.

COMMENTS

All three wells, Oseil #1, Oseil #2 and Oseil #4 are on production.

Steam heaters arrived on location 3rd February 2003 and are presently being connected into the TPS process system to assist in combating foam induced process problems and to aid water separation (emulsion breakdown).

At 22:30 hours on 2 nd February 2003 loading of the tanker Shanghai was completed and at 02:00 hours on the 3rd February 2003, the loading hose was disconnected and the vessel departed, signifying completion of the first consignment of crude oil from the Oseil oilfield. The consignment of 250,316 barrels represents 241,299 barrels corrected to 60 degrees Fahrenheit.

BEGINS SECOND LIFTING

By 16:00 hours 3rd February 2003, the tanker Swallow was berthed and the loading hose connected ready for receiving crude oil.

Current operations are that production has recommenced and the Swallow is being loaded with Oseil crude oil.

For further information please contact:

Mr Russell Brimage, Jakarta Office: Ph: 0011 6221 7696977, Fax: 0011 6221 7697012, Email: reb@kalrez.co.id

Mr Giuseppe (Joe) Mercorella, Adelaide Office, Mobile: 0403680570, Ph: 08-82391344, Fax: 08-82391744

Mr Eddie Smith, Perth Office, Ph: 08-93629330, Fax: 08-93629331, Email: kalrez@kalrez.com.au