Stuart Petroleum to Spud Hiraji #1 Well

Stuart Petroleum Limited as Operator for PEL 113 in the Cooper/Eromanga Basins, South Australia, advises the oil exploration well, Hiraji #1, will spud on or about 15 November 2005.

In announcing this well Stuart Managing Director Mr. Tino Guglielmo said "This well is another step in the largest exploration program ever undertaken by Stuart. Over the course of this financial year at least 11 exploration wells will be drilled in that program."

Hiraji #1 with multiple oil targets is addressing an unrisked P50 oil in place 2.6 million barrels with an upside P10 oil in place of 7.8 million barrels. This well is Stuart's second oil exploration well in PEL 113 during 2005. If successful it will confirm a new oil play in the Patchawarra formation on the SE flank of the Dirkala Ridge.

"This Patchawarra play will add to the potential of the Dirkala Ridge following the successful Padulla #2 well," Mr. Guglielmo said.

"Success will reinforce our view that the Cooper Basin is a great place to be exploring as that success can, through utilization of existing infrastructure be converted into cashflow quickly," said Mr. Tino Guglielmo.

Hiraji #1 will be located within the Strezlecki Regional Reserve, approximately 60km SW of Moomba.

The Hiraji Prospect is on a subsidiary structural nose on the southeast flank of the Dirkala Ridge. The Ridge extends from Padulla in the west, northeast through the Wotan and Kensei Prospects, to the Wancoocha Oil Field, the Dirkala Oil and Gas Field and the Garanjanie Gas Field.

The Hiraji Prospect has four-way dip closure at the Murta, McKinlay, Birkhead and Hutton potential reservoirs. The Patchawarra target is expected to have fault dependent closure. The Patchawarra could also have a stratigraphic component to the trap.

Oil shows reported in Padulla #1 within the Murta and McKinlay reservoirs are being assessed by Padulla #2 and the Wancoocha Oil Field is approximately 8.5 km to the northeast. Hiraji extends partially into the Dunoon Trough, a deep Permian depocentre which separates the Dirkala Ridge to the North from the Dunoon Ridge to the south. The Dunoon Trough is thought to be the hydrocarbon source area for oil and gas fields on both adjacent ridges and will be the source for any hydrocarbons found in Hiraji.

Hiraji #1 is mapped as having an upside unrisked (P10) of 7.8 million barrels of oil in place in the primary objectives.

The well is located on a southeastern nose on the Dirkala Ridge, extending into the adjacent Dunoon Trough. The trap is in an optimum location to receive oil migrating out of the Dunoon Trough.

As Hiraji is only 20km from the Worrior production facilities, any future production would be managed from Worrior.