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EXHIBIT 99.7

                               PETSEC ENERGY LTD
                                ACN 000 602 700


16 June 2000



               PETSEC ENERGY INC REACHES AGREEMENT WITH CREDITORS


Sydney, Australia - Petsec Energy Ltd (ASX: PSA and OTC BB: PSJEY) today
announced that its wholly owned USA subsidiary, Petsec Energy Inc., has reached
agreement with the unsecured creditors committee to sell Petsec Energy Inc. or
all of its assets. The unsecured creditors committee was appointed following
the Chapter 11 filing by Petsec Energy Inc. on April 13, 2000. Subject to
approval by the Bankruptcy Court presiding over Petsec Energy Inc.'s Chapter 11
proceedings, Houlihan Lokey Howard & Zukin Capital, L.P. will be managing the
divestiture process for Petsec Energy Inc. and the unsecured creditors
committee.

Houlihan Lokey will be distributing an information memorandum describing the
assets of Petsec Energy Inc. to potential interested parties. All sale
transactions will be subject to the approval of the Bankruptcy Court.

Petsec Energy Inc. anticipates filing a Plan of Reorganisation which
contemplates an agreed distribution of the sale proceeds to the creditors, the
equity owner and certain of Petsec Energy Inc.'s senior management team in the
USA. A copy of the term sheet which sets out the contemplated distribution
follows.

Petsec is an independent oil and gas exploration and production company
operating in the shallow waters of the US Gulf of Mexico. The Company's
corporate office is in Sydney, Australia. Field operations are managed in the
US from Lafayette, Louisiana.

All inquiries concerning the divestiture of Petsec Energy Inc.'s assets should
be directed to the following professionals at Houlihan Lokey:

Andrew B. Miller, Managing Director
Matthew R. Niemann, Vice President
Brett A. Lowrey, Associate
Houlihan Lokey Howard & Zukin Capital, L.P.
(310) 553-8871 (phone) (310) 553-4024 (fax) 1930 Century Park West Los Angeles,
CA 90067-6802


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All other inquiries concerning Petsec should be directed to:

In Australia:                              In USA:

Terry Fern, Managing Director              Ross Keogh, Chief Financial Officer
Petsec Energy Ltd                          Petsec Energy Ltd
(61) 2 9247 4605 (phone)                   (337) 989 1942 (phone)
(61) 2 9251 2410 (fax)                     (337) 989 7271 (fax)
Level 13, Gold Fields House                143 Ridgeway Drive, Suite 113
1 Alfred Street, Sydney NSW 2000           Lafayette, Louisiana 70503-3402




 Company information is available at Petsec's website http://www.petsec.com.au
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1.    Information in this report which relates to hydrocarbon reserves is based
      on information compiled by a person qualified in accordance with Listing
      Rule 5.11 and accurately reflects the information compiled by that
      person.

2.    Certain statements in this report regarding future expectations and plans
      of the Company may be regarded as "forward-looking statements" within the
      meaning of Section 27A of the USA Securities Act of 1933 and Section 21E
      of the USA Securities Exchange Act of 1934. Although the Company believes
      that its expectations and plans are based upon reasonable assumptions, it
      can give no assurance that its goals will be met. Actual results may vary
      significantly from those anticipated due to many factors, including oil
      and gas prices, operating hazards, drilling risks, environmental risks
      and uncertainties in interpreting engineering and other data relating to
      oil and gas reservoirs, as well as other risks discussed in the Company's
      SEC filings.