Stuart Petroleum Triples its Cooper Basin Oil Reserves

Stuart Petroleum revealed that the recently drilled wildcat success, Worrior #1 in Australia, had the effect of tripling the Company's oil reserves. Stuart's CEO, Mr. Tino Guglielmo, advised that on the basis of preliminary estimates, Stuart's reserves of producible oil had been lifted from 1.2 million barrels to a total of 3.6 million barrels as a result of the Worrior success.

"The Worrior #2 well has been a genuinely significant discovery for Stuart Petroleum" he said. "The timing of this discovery could not have been better for the development of Stuart's Cooper Basin energy business" Mr. Guglielmo said.

The Worrior field is expected to be brought into production on Extended Production Test within a matter of 4 to 6 weeks.

Mr. Guglielmo said that Stuart's 70% share of Worrior production, together with the Company's 75% share of Acrasia field production, could be expected to impact significantly and favorably on Stuart's current year revenues.

The Worrior well intersected a total of 35.5 meters of net hydrocarbon pay in four horizons, as assessed from wireline logs. The pay was distributed through the various zones as follows.

  • McKinlay 13.25 meters

  • Birkhead 9.50 meters

  • Hutton 6.75 meters

  • Patchawarra 6.00 meters

  • The potential of the Patchawarra Formation will be the subject of further study over the coming months. While DST # 4 over this zone flowed gas there is a significant chance that the gas is contained in a small gas cap sitting on top of an oil zone. The key issue is to determine the proportion of gas and oil contained in the reservoir.

    The key elements of the forward plan for the Worrior field are as follows:

  • Worrior # 1 will be brought on line on Extended Production Test (EPT) to confirm the potential of the McKinlay, Birkhead and Hutton reservoirs. The EPT will commence in November with an expected duration of not less than six months.
  • The anticipated EPT production rate will be 1200 Barrels of Oil Per Day and be trucked into Santos’s Moomba facility. The main constraint on production will be the availability of road tankers.

  • Studies have commenced to determine the feasibility of construction of a pipeline to connect directly into the Santos pipeline infrastructure to negate production constraints imposed by the availability of road tankers and inclement weather.

  • Engineering studies aimed at designing the appropriate permanent production facilities will commence shortly. The construction of new facilities is expected to commence in early 2004.

  • A 3D seismic survey will be acquired over the Worrior field to optimize the placement of any future wells and add further definition to the field description. The timing of the survey is expected to be April 2004.

  • Any further drilling will likely occur in the second half of 2004

  • Participants in the PEL 93 Joint Venture are Stuart Petroleum Limited as operator with 70% and Cooper Energy with the remaining 30%.