Stuart Petroleum has today announced its third successive record month for oil production from the Cooper Basin of South Australia.
Stuart CEO, Mr Tino Guglielmo said: "Stuart’s share of oil production in December was some 82,000 barrels, a 34% increase on November’s record performance. This ramping up of production builds on the good year of discovery in 2004.”
Stuart produced 197,000 barrels of oil [Stuart’s share] for the second quarter of fiscal 2005 and delivered half year production of 308,000 barrels [Stuart’s share], both record results. Stuart has previously issued guidance for its share of full year production at between 600,000 to 650,000 barrels. “This half year result is increasing our confidence of achieving a fiscal 2005 production at the upper end of previous guidance,” Mr Guglielmo said.
"We have focussed on growing production during this half year and have transformed Stuart into a strong cash generator. Our objective is to maintain production at these levels for as long as possible,” Mr Guglielmo said. These production levels are comfortably above hedged volumes with any oil produced above 45,000 barrels per month selling for around A$52 per barrel at current oil prices,” Mr Guglielmo added.
Stuart’s strong production performance is driven by its 70% owned Worrior and 35% owned Derrilyn fields, with smaller contributions from first production from Harpoono and Reg Sprigg West. The Acrasia field continues to produce at a modest rate.
"Stuart's focus in the field over the next few months has turned to planning for a high impact 2005 drilling campaign. The drilling program will commence in late March or early April with the drilling of Baystone, an oil and gas exploration well on trend with the Reg Sprigg discoveries in PEL 90,” Mr Guglielmo said.
The 2005 drilling program will consist of up to eight wells. Drilling rig slots are currently being secured for the balance of the program after Baystone. An updated 2005 drilling schedule will be released as soon as it is available.
FOR FURTHER INFORMATION: Please contact Tino Guglielmo Stuart Petroleum Limited +61 8 8410 0611
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