Derrilyn Reaches Total Depth, Reserves May Be Upgraded

Stuart Petroleum Limited said that drilling of Derrilyn 4 has reached total depth and the result of wireline logs show that the primary target, the Hutton Sandstone, was intersected 11 meters high to prognosis.

Mr. Tino Guglielmo, Managing Director of Stuart petroleum Limited advised that, "this well confirms the North Easterly extension of the field and may result in an upgrade of field reserves." Logs indicate approximately 4-5 meters of pay which will be flow tested in the next few days.

"The Hutton reservoir quality looks good and we are hopeful of a strong flow," Mr Guglielmo added.

'Derrilyn 1 flowed oil from a test of the Hutton at a rate of 1700 barrels of oil per day.

Derrilyn 4:

--Well Type: Oil Appraisal Well PPL 206
--Location Derrilyn Unit Area
--Participating Interest: Stuart Petroleum Ltd 35%
--Santos Ltd 65% (Operator)
--Spud : 10 August 2006
--Total Depth : 1550 meters
--Current Operation : Running logs prior to testing

While drilling, Derrilyn 4 also recorded oil shows in the Cadna-owie Formation, Murta and McKinlay Formations. Stuart will assess the impact on its reserves position in due course.