Stuart Preps for Drilling in Cooper Basin
Stuart has contracted Hunt Rig # 2 to drill the first of a planned 3 well program in the Cooper Basin. Stuart has retained the right to vary the drill program if necessary, under the terms of a 1+1+1 drilling option and drilling is planned to commence on or about 25 June.
Stuart plans to produce and sell in excess of 350,000 barrels of oil for the financial year 2010-2011, significantly greater than forecast 2009-2010 financial year production of approximately 190,000 barrels.
Hunt Rig # 2 is expected to spud oil development well, Worrior 7, (Stuart 70%) on or about June 25. Worrior 7 will be drilled adjacent to producing wells Worrior 4 and Worrior 1 to a total depth of approximately 1660 meters. It has been designed to access untapped reserves in the eastern sector of the field and to thereby increase the productivity, cash flow and profitability of the field.
Worrior 7 is expected to convert approximately 300,000 barrels (100% JV) of undeveloped reserves into developed reserves. The well is programmed to contribute approximately 100,000 barrels (100% JV) of production in financial year 2010-2011.
Kerinna 2 (Stuart 100%) will be drilled updip of discovery well Kerinna 1 to a total depth of approximately 1860 meters, to access a prognosed 260,000 barrels of mean un-risked recoverable oil in the Hutton Sandstone. Kerinna 1 showed this formation to contain high quality reservoir sands and Kerinna 2 is expected to add usefully to Stuart's reserve base and production profile.
Stuart plans to reuse production facilities which it owns and are not presently in use in order to minimize the time between well completion and first production.
Oil appraisal/development well, Acrasia 5, (Stuart 75%) will, subject to Joint Venture approval, be drilled adjacent to producing wells Acrasia 1 and Acrasia 3 to a total depth of approximately 2350 meters. This well is designed to access a prognosed 380,000 barrels of mean un-risked
recoverable oil in the southern sector of the Acrasia Oilfield. It is expected to add significantly to reserves in the field and to the Company's production profile.
Each of these wells is close to existing production facilities and the Company plans to bring newly producible oil on-stream without delay. Drilling is being financed by existing funding capacities.