Stuart Increases Cooper Basin Production with Fracture Program

Stuart Petroleum reports that a two well fracture stimulation program of the Murta formation at the Padulla oilfield in the Cooper Basin, had been successfully completed with substantial improvements in production rates.

Stuart advised that production from the 100% owned field had increased from a pre-fracture production rate of around 30 barrels of oil per day to an initial postfracture rate of over 1,000 barrels per day. Production is expected to stabilize around 500 barrels of oil per day. This will boost Stuart's production from the Cooper Basin, taking daily output to in excess of 2,000 barrels of oil per day.

The Padulla fracture stimulations, part of a four well program costing $1.0 million, commenced on August 25, 2006 with results assessed up to September 11, 2006.

In announcing the results, Mr. Tino Guglielmo, the Managing Director of Stuart said, "The Stuart operated program has been highly successful and, in addition to the oil production, an increase in oil reserves is anticipated once production data and subsequent production performance is fully analyzed".

Mr. Guglielmo said, "The two Padulla wells are already on production. Over the coming weeks, pumps will be installed on the two wells to further enhance production rates".

Mr. Guglielmo noted that as a result of the improved performance evident at Padulla, Stuart's completion program, for future wells with Murta Formation pay, would include fracture stimulation.

The two Padulla wells are in the western part of PEL 113.

Mr. Guglielmo also advised that development of the two recent discoveries at Rimfire 1 and Revenue 1 was well advanced and that both wells had been fracture stimulated.

"Rimfire 1 will be connected to the Harpoono facility via flowline and production will commence later this month. Revenue 1 production will commence in October, also through the Harpoono facilities. Both Rimfire 1 and Revenue 1 will be placed on pump to further enhance production rates".

"Rimfire 1 flowed at 1,100 barrels of oil per day from the Birkhead Formation. The fracture program was aimed at the Murta Formation. Rimfire 1 recovered oil from the pipe in a DST of the Murta and we are hopeful the fracture program will result in an enhanced oil flow from this formation".