Stuart Petroleum to Spud Chester 1 in June

Stuart Petroleum Limited announced that its 2008 Cooper/Eromanga Basin Drilling Program will commence on or about June 1 with the Chester 1 exploration well in PEL 113. The well will target probabilistic mean undiscovered oil reserves potential of 0.8 million barrels and a mean un-risked gas resource of 0.5 billion cubic feet.

"Chester 1 is the first of three wells planned for PEL 113 this year which will precede the drilling of the Bazzard structure in Gippsland Basin permit Vic P53 in September," said Tino Guglielmo, Managing Director of Stuart Petroleum.

The Chester structure is a relatively simple four-way closure with faulting on the southern and eastern flanks at the top Murteree horizon. The structure is located on the western flank of the Daralingie Trough which has the Daralingie gas and oil field on the eastern edge and the Arwon and Worrior oil fields to the west of Chester.

The Nappamerri Group zero edge is to the east of Chester so that hydrocarbons generated in the Toolachee and Epsilon (Permian) sediments within the Daralingie Trough have easy access for migration into overlying Eromanga Basin reservoirs.

Primary targets in Chester 1 are the McKinlay Member (oil), Birkhead Formation (oil) and the Epsilon Formation (gas) with the Patchawarra Formation (gas) as a secondary target. Stuart Petroleum has 100% equity in Chester 1 which will be drilled by Century Rig 3.