STUART ADVANCES ITS PARTICIPATION IN THE OFFSHORE GIPPSLAND BASIN
Stuart Petroleum Limited (ASX Code; STU) announces that it has joined a Consortium of offshore petroleum exploration companies, the ‘West Triton Rig Consortium’ and has become a party to the Bass Strait Drilling Cooperation Agreement.
Under the terms of this agreement Stuart, in its capacity as Operator for the offshore Gippsland Basin permit Vic P53, will drill the eighth well in the Consortium’s sequence utilising Seadrill Management Pte Ltd’s jackup rig ‘West Triton’.
The West Triton rig is presently being fitted out in Singapore. It is expected to arrive in offshore Victorian waters in February 2008 and Stuart expects to spud its first well in Vic P53, Bazzard 1, in September 2008.
Stuart will sole-fund the cost of Bazzard 1 to earn a 50% participating interest in any discovery area. Stuart is entitled to earn 50% in the whole of the Vic P53 permit by sole-funding a second well.
At completion of drilling Bazzard 1, participating interests in any discovery will be: Stuart Petroleum Limited (ASX:STU) 50% Cue Petroleum Pty Ltd 25% Exoil Limited 16.667% Moby Oil & Gas Ltd (ASX:MOG) 8.333%
Stuart’s Managing Director, Mr Tino Guglielmo said “Detailed study of 2007 3D seismic data has revealed Vic P53 to be an extremely promising permit area. Stuart believes that its planned high-impact well, Bazzard 1, will test a structure with potential to contain 50 million barrels of oil (mean unrisked reserves).�
STU Price at posting:
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