Stuart Prepares to Spud Subzero 1

Stuart Petroleum Limited announced that it will spud the Subzero 1 exploration well in Cooper/Eromanga Basin PEL 113 on or about June 19, 2008. Subzero 1 will target probabilistic mean undiscovered oil reserves potential of 1.3 million barrels.

"Subzero is the second well in our three well Cooper/Eromanga Basin exploration program which precedes the drilling of the Bazzard 1 exploration well in the Gippsland Basin permit Vic P53," said Tino Guglielmo, Managing Director of Stuart Petroleum.

The Subzero structure is a broad, relatively flat four-way dip closure on the northwestern flank of the Murteree Ridge on the southern edge of the Allunga Trough. The Santos-operated Cabernet gas field lies 4km to the southwest and the Santos operated Derrilyn/Toparoa oil fields lie 4km to the southeast on the Murteree Ridge.

The Subzero 1 well's primary targets are the McKinlay Member of the Murta Formation and the Birkhead Formation, both for oil. The underlying Patchawarra and Epsilon Formations are considered to be secondary targets, both for gas. Interest holders in the well are Stuart Petroleum Limited (65%) and Avery Resources (Australia) Pty Ltd (35%) and the well will be operated by Stuart using Century Rig 3.