Australian oil producer, Stuart Petroleum Limited, has recorded Sales revenues of $11.2 million for the Quarter ended September 30, 2008, a 20% increase over the September 2007 Quarter Sales of $9.3 million.
Stuart's Managing Director, Tino Guglielmo, said, "The Cooper/Eromanga Basin continues to generate strong cashflows from oil production at a rate of approximately 35,000 barrels of oil per month net to Stuart. Forecast production for the year is in excess of 400,000 barrels," he added.
Sales Revenues, Oil Prices and Hedging
Earlier this year the Company set hedges in place to guarantee US $100 per barrel for a significant proportion of forward production commencing in November this year. Approximately 70% of Stuart's production volumes are hedged for the remainder of 2008/09 delivering A$110.36 per barrel regardless of any further decline in USD oil prices.
As part of the hedge program Stuart will receive US $100 per barrel for a total of 198,000 barrels of production in the 2009/10 and 2010/11 financial years.
Stuart's Growth Portfolio
Stuart's first operated offshore well, the high impact Bazzard 1 well in the Gippsland Basin, was drilled without incident. The well, which spudded 20 September, was plugged and abandoned after recording only minor shows. The results of the well will be integrated with other data before making a decision whether or not to elect to drill a second well in the Vic P53 permit and commit to further exploration in the area.
Stuart's recent acquisition of a 50% interest in the Oliver oilfield in Timor Sea permit AC/P33 was designed to both add to reserves and to balance the Company’s exploration portfolio. Independent assessment of the field indicates potential for a four-fold increase in the Company's reserves.
Detailed mapping of the Oliver discovery is firming up the location of the Oliver 2 appraisal well. The well is scheduled for drilling in the second half of 2009. Engineering studies, to commence shortly, will identify the various field development options.
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