Stuart Petroleum to Spud Toparoa #1 Well

Stuart Petroleum is continuing its exploration program with the Toparoa #1 well which will spud around February 1, 2006.

Toparoa #1 with multiple oil targets is addressing an unrisked P50 oil in place 1.6 million barrels with an upside P10 oil in place of 3.0 million barrels. If successful the well will confirm a new oil play in the Hutton Sandstone and McKinlay Member in a structure to the west of the Derrilyn Oil Field.

The well will be funded by Avery Resources (Australia) Pty Ltd of Calgary Canada pursuant to an agreement for Avery to farmin to the Toparoa Prospect.

In announcing this well Stuart Managing Director Mr. Tino Guglielmo said "This well is adjacent to and on trend with the very productive Derrilyn Oil Field and its potential for success is rated highly."

"Success will reinforce our view that the Cooper Basin is a great place to be exploring as any success can, through utilization of existing infrastructure be converted into cashflow quickly," said Mr. Tino Guglielmo. "This is particularly relevant in today's economic climate of high oil prices in the range of A$75 – A$90 where new or incremental production can be brought into production in a short time to capture the attractive profit margins associated with these prices" he added.

Toparoa #1 will be drilled at the Toparoa "B" location. If Toparoa #1 is successful, Toparoa #2 will be drilled immediately afterwards to appraise the southern extent of the field.