Stuart Petroleum has been granted its fourth exploration license, PEL 113 in the southern sector of the Cooper/Eromanga basins in South Australia. The exploration effort will commence immediately with the acquisition of additional seismic to high grade a number of promising oil and gas prospects in the block. Stuart considers this block to be highly prospective. As such it will feature significantly in the drilling program for the coming 2003/2004 budget year with the drilling of at least 2 wells, likely one gas and one oil well. The block is planned to be a key element in the company’s gas strategy as the exploration targets identified are:
- close to existing infrastructure
- moderate to high rate producers
- of significant size, around 10 BCF gas in place
- high in LPG and gas condensate content
Fields with these characteristics are able to deliver spot sales to the SA Cooper Basin Joint Venture who earn significant toll processing revenues from third party producers such as Stuart.
In keeping with Stuart's exploration strategy, targeting a 65% to 75% working interest as operator in its properties, Stuart will seek farm-in partners for the block or part thereof.