STU & BPT Acrasia Correction Ann Out. 3.7 Million Barrels! Bad...

STU & BPT Acrasia Correction Ann Out. 3.7 Million Barrels! Bad Luck

STUART PETROLEUM NL 2002-05-08 ASX-SIGNAL-G

HOMEX - Adelaide

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ASX CORRECTION FOR ANNOUNCEMENT PREVIOUSLY RELEASED TODAY.

A second well, an exploration / appraisal well, is to be drilled
later this month west of the historic Acrasia # 1 oil discovery well
in the Cooper Basin region of South Australia.

The well, Acrasia # 2 was announced today by Stuart Petroleum as
Operator for the Stuart Petroleum / Beach Petroleum Joint Venture,
which last month completed drilling of the Acrasia # 1 well - the
first new well by an independent operator in the region in more than
20 years.

Stuart and Beach also announced today that drilling of Acrasia # 1
had indicated a resource of approximately 3.7 million barrels of oil
in place.

"Following the success of Acrasia # 1, we have decided to drill the
Acrasia # 2 appraisal well west of the first well," Stuart
petroleum's Operations director, Mr Rod Hollingsworth, said.

"As Acrasia # 1 is located in the eastern end of a very elongated
structure, there is the potential to increase our current estimates
of oil in place by drilling further to the west along structure," he
said.

Acrasia # 2 is also being designed to serve as a second production
point along the Acrasia structure.

Mr Hollingsworth also announced that the PEL 90 Candra joint venture
expected to begin production from the Acrasia # 1 well within the
next three weeks, initially as a production testing programme moving
to full commercial production. Initial production rates are expected
to be in the order of 500 barrels a day, building gradually to
approximately 1000 barrels of oil a day.

Acrasia # 2 will be drilled 1.2 kilometres directly west of Acrasia
# 1.

Mr Hollingsworth said drilling of Acrasia # 2 was expected to
commence in the next two to three weeks.

Interests in both Acrasia # 1 and Acrasia # 2, located 90 kilometres
north of Innamincka in the southeast corner of the Candra Block of
PEL 90, are Stuart petroleum (75%) and Operator and Beach Petroleum
(25%).