Stuart Petroleum to Spud Rimfire Well

Stuart Petroleum is moving to plug and abandon the Dalray #1 oil wildcat in the Cooper Basin PEL 93 in Australia. The well failed to encounter economic hydrocarbons. Drill Stem Test #2 on Dalray #1, which was to test the Patchawarra Formation over the interval 1506m to 1525m, was aborted due to hole instability. The drilling rig now moves to Rimfire #1 in adjacent PEL 113, another shallow oil target, near to the Harpoono Oil Field.

"The disappointing result at Dalray effectively downgrades our expectations of oil reserves in the Padulla/Dalray complex," commented Stuart Petroleum managing director, Mr. Tino Guglielmo. "Exploitation of the Padulla oil field will now focus on the two successful wells on the structure, Padulla #2 and #3, which are 100% owned by Stuart."

Testing of Padulla #3 is commencing this week.

Rimfire #1 is an oil target 3km northeast of the Harpoono oilfield, which is currently producing at around 400 barrels a day. The Rimfire drill target was developed from a 3D seismic survey conducted by Stuart and its partners last year. This seismic program was largely responsible for the delineation of the successful Harpoono #2 development well which flowed at an initial rate of 1080 barrels a day during testing.

The Rimfire structure has potential oil in place of 1.7 million barrels (mean) in the Murta Formation, the McKinlay Member and the Hutton Sandstone.

Participants in Rimfire #1 are Stuart Petroleum as operator with 66.7% and Beach Petroleum with 33.3%.