Avery Resources Joins Stuart in Cooper Basin Exploration Program

Stuart Petroleum has agreed to farmout a 35% interest in part of PEL113 in the South Australian sector of the Cooper Basin to Avery Resources (Australia) Pty Ltd a subsidiary of Avery Resources Inc. The farmout block, to be known as the Murteree Block, is some 52 square kilometers in area and is located immediately between the Derrilyn oilfield production license to the east and the Cabernet gas field production license to the west.

"Stuart Petroleum is pleased to be able to facilitate the entry of a new international player into the Cooper Basin which is recognized as a prospective exploration destination" Mr. Tino Guglielmo, Managing Director of Stuart Petroleum said.

The block contains an under-explored extension of a prolific oil trend known as the Murteree High, plus the flanks of the feature. Nearby Murteree High oilfields, along trend to the east of the Murteree Block, have produced almost eight million barrels of oil to date.

Avery will contribute to funding the acquisition of a 34 square kilometer 3D seismic survey plus the drilling of two wells in the block, planned for first quarter of 2006. The 3D seismic will be aimed at delineating optimal drilling locations including the Red Handed and Light Fingers targets. The structures have already been mapped from existing 2D seismic. They have potential for stacked Cretaceous and Jurassic objectives, similar to pools that are productive elsewhere on the Murteree High. There are two additional Cretaceous-Jurassic structures mapped in the southeast corner of the block, plus Permian flank plays on either side of the Murteree High.

Stuart Petroleum Limited will carry a 65% interest in the Murteree Block and operate on behalf of Avery and itself.