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PEL 90 Candra Block Cooper Basin SA

Document date: Mon 08 Jul 2002 Published: Mon 08 Jul 2002 11:51:41
Document No: 133638 Document part: A
Market Flag: Y
Classification: Progress Report
STUART PETROLEUM NL 2002-07-08 ASX-SIGNAL-G

HOMEX - Adelaide

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PEL 90 CANDRA BLOCK
COOPER BASIN SOUTH AUSTRALIA
STUART PETROLEUM / BEACH PETROLEUM JOINT VENTURE

ACRASIA # 2

As Operator for the Stuart Petroleum / Beach Petroleum Joint Venture,
Stuart Petroleum wishes to advise that the Joint Venture's second
well on the block, Acrasia # 2, has been successful and will be
completed for production from the Tinchoo Formation and the Paning
Formation.

A full suite of electric logs were run over the weekend with the
following results:-

* 5 metres of oil pay was logged in the Triassic Tinchoo Formation
of the Cooper Basin succession.

* 3 metres of oil pay was logged in the basal Triassic Paning of the
Cooper Basin Arrabury Formation above a poorly defined oil water
contact.

Acrasia # 2 is currently being cased for production from the above
oil saturated sands and the well will be placed on production test as
soon as practicable. ODE rig #30 is expected to be released from
Acrasia # 2 on tomorrow, 9 July.

Both the Tinchoo Formation and the Hutton Formation (which is
productive in Acrasia # 1 but unproductive in Acrasia # 2) were
intercepted high to prognosis in Acrasia # 2 - in the case of the
Tinchoo Formation, 7.5 metres high to prognosis. This is an important
result which may impact favourably on the volume of oil which will
ultimately be producible from the Acrasia structure.

An updated estimate of the total Acrasia oil resource will be
prepared for release to ASX when the requisite geophysical mapping
has been completed.

ACRASIA # 1 PRODUCTION TESTING

As previously advised, Acrasia # 1 has been completed for production.
Commencement of Production Testing and transport of oil to point of
sale has been delayed while new regulatory requirements were met.
These requirements have now been satisfied and 1000 barrel tank farm
has been established. Acrasia # 1 is scheduled to begin production
later this week at an initial rate of 500 barrels per day rising to
1000 barrels per day over the first several weeks of the production
test period.

COMMENTARY

Drilling of Acrasia # 1 and # 2 has resulted in oil flows from five
horizons, as set out below:-

* Birkhead Formation Acrasia # 1
* Hutton Formation Acrasia # 1
* Tinchoo Formation (upper sand) Acrasia # 1
* Tinchoo Formation (middle sand) Acrasia # 2
* Paning Member Acrasia # 2

In addition, oil shows were noted in the basal Hutton and in the
Poolawanna Formation in Acrasia # 1 and these sands will be
investigated further in that well.

STUART PETROLEUM DRILLING PROGRAMME
PELA 102
COOPER BASIN, SOUTH AUSTRALIA

Stuart Petroleum wishes to advise that it proposes to spud the well
Doriemus #1 early next month, subject to grant of Petroleum
Exploration Licence 102 by the South Australian Government. This will
be a 100% Stuart Petroleum well and will be drilled for gas targets
in the Toolachee and Patchawarra Formations of the Cooper Basin.

STUART PETROLEUM / COOPER ENERGY JOINT VENTURE
PEL 93
COOPER BASIN, SOUTH AUSTRALIA

Doriemus will be followed by drilling of Warrior # 1 in PEL 93 in
joint venture with Cooper Energy NL (Stuart Petroleum retaining 70%
interest, Cooper Energy earning 30% interest). This well is scheduled
to be drilled in September and will target oil in the Namur Formation
of the Eromanga Basin and oil in Cooper Basin strata.

STUART PETROLEUM 1 COOPER ENERGY JOINT VENTURE
PEL 90 MARIBU BLOCK
COOPER BASIN, SOUTH AUSTRALIA

Following Warrior # 1, Stuart proposes to drill Paning # 2 in PEL 90
Maribu Block in joint venture with Cooper Energy (Stuart retaining
75% interest, Cooper earning 25% interest). This well will target
gas-saturated sands identified by earlier drilling in the basal
Epsilon, Toolachee, Patchawarra and Tirrawarra Formations. This well
is scheduled to spud in October this year.

Stuart has now drilled two exploration wells, both of which have been
successful and will become oil producers.

J G Branson