Stuart and Giraul Team Up in Angolan Oil Venture

South Australian oil producer Stuart Petroleum announced the formation of a joint venture with Angolan-based Giraul Petroleum. Stuart and Giraul have agreed to jointly explore for oil onshore in the Republic of Angola, in West Africa.

In a joint announcement with Giraul today, Stuart Petroleum Managing Director Tino Guglielmo said that the Joint Venture would evaluate opportunities for oil discovery and development in Angola. The parties will participate equally in the Joint Venture.

The Angolan State oil concessionaire, Sonangol, has announced that Stuart Petroleum successfully pre-qualified as an Operator for the bidding round which opened on 13 Dec. 13.

The Managing Director of Giraul Petroleum, Rogerio Da Gloria, welcomed the establishment of the Joint Venture with Stuart, a producer from 11 oilfields in the Cooper Basin in Australia. Giraul Petroleum is a private Angolan company formed in response to the Angolan Government's desire to foster and develop a strong local oil industry. Angola is the second largest producer of oil in sub-Saharan Africa and it has a most attractive future as an oil producer.

Guglielmo and Mr Da Gloria said that the Joint Venture would focus on onshore exploration. "Onshore acreage in Angola has remained dormant over the past 30 years and has yet to be the subject of modern exploration techniques and technologies," they said.

"New seismic and exploration techniques are expected to define oil targets in the 3 to 30 million barrel size range," Guglielmo said. "We look forward to working with Giraul by bringing to the Angolan industry Stuart's more than 200 man-years of onshore operating oil experience. Angola has a quality human resource base and an administration which is committed to growing the Angolan economy."

Da Gloria added: "Giraul is pleased to be working with Stuart. Stuart has been able to demonstrate its capability to discover and develop oilfields to both Giraul Petroleum and to Sonangol, the Angolan national oil company."

The permitting process is expected to lead to onshore exploration licenses being awarded in mid 2008.