update: drilling report - arwon #1

ANNOUNCEMENT TO ASX
DRILLING REPORT: ARWON # 1
PEL 93, COOPER/EROMANGA BASIN, SA

Stuart Petroleum advises the well was drilled to 790 metres. The 9 5/8” surface casing was then run and cemented.

The rig is presently installing the bradenhead
spool prior to installing the BOPs.

Drilling is expected to recommence Tuesday afternoon.
The status of Arwon # 1 at 0600 hours (CST) on 27 September 2004 was:
Location: PEL 93, 55km south-west of Moomba
Planned Total Depth: 1930 metres

Current depth: 790 metres
Operations: Preparing to install bradenhead spool
Spud: 02.00hrs, 23 September 2004

Participants in the Arwon Joint Venture are:
Stuart Petroleum Limited (Operator) 88.8% (STU)
Cooper Energy NL 11.2% (COE)

Yours faithfully,

Tino Guglielmo
Chief Executive Officer