Stuart Relocates Rig to Cooper Basin

Following rain-interruption, the rig which drilled Stuart's recently successful well, Worrior 7, has moved to the site of the Company's first exploration well for the year, Kerinna 2.

3D seismic mapping has located the crest of the Kerinna drape closure approximately 700 meters northeast of discovery well Kerinna 1, on Stuart's Petroleum Exploration License 516 in the Cooper/Eromanga Basin of northeastern South Australia. Mapping suggests that the
Hutton Sandstone contains 11 meters of oil pay at the Kerinna 2 location and that the recoverable oil potential of the structure will be, on a mean un-risked basis, between 250,000 and 300,000 barrels.

Stuart holds 100% interest in the well.

In 1984, Kerinna 1, now thought to have been drilled on the flank of the Kerinna structure, intersected a 3 meter column of oil in the Hutton Sandstone. Although completed as a producer, Kerinna 1 was sited close to the oil-water contact and it produced only a modest
amount of oil.

Kerinna 2 is planned as a crestal test of the Kerinna structure and it is programmed to reach a total depth of 1855 meters. Its primary objective will be to re-establish production of oil from the Hutton Sandstone. Its secondary objectives will be to evaluate the oil potential of
the overlying Murta Formation and the McKinlay Member of the Namur Sandstone.