Stuart Petroleum to Begin Four Well Drilling Program in mid-September

Stuart Petroleum announced a four well oil drilling program in the Cooper Basin that is expected to start in mid-September in the Cooper Basin. The wells to be drilled are Tawriffic East in PEL 93, Might & Power, Rising Fast and Comic in PEL 113.

This drilling program follows on from the successful Derrilyn 4 appraisal well, which was drilled in August and flowed oil at a rate of 950 barrels of oil per day from the Hutton Formation and the recent Revenue 1 discovery.

The Stuart operated drilling program will commence in mid-September in the prospective northern area of PEL 93 not far from the Worrior oilfield, with subsequent wells to be drilled in the highly prospective Harpoono area of the Dunoon Ridge in PEL 113. The wells will address an unrisked mean reserves potential of 1.8 million barrels. The attached map indicates the respective locations of the wells.

The discovery of oil in the Birkhead Formation in the Revenue 1 well further upgrades the Dunoon Ridge and this will be the focus of continued drilling activity in 2006/2007. Stuart's drilling program continues to deliver better than a 50% success rate.

Stuart's 2005/2006 seismic program has identified numerous additional highly prospective drilling opportunities in its Cooper Basin acreage. The Harpoono 3D seismic program continues to uncover exciting follow up opportunities in PEL 113 and the geological team is also working on other potential structures identified by the Sprigg Extension 3D seismic program in PEL 90. These opportunities will continue to fuel the Company's growth.

Development planning is well advanced for the Revenue and Rimfire discoveries with production likely to commence in mid to late September.