ANNOUNCEMENT TO ASX1) OPERATIONS UPDATE: ARWON # 1 PEL 93,...

ANNOUNCEMENT TO ASX
1) OPERATIONS UPDATE: ARWON # 1 PEL 93, COOPER/EROMANGA BASIN SA

Stuart Petroleum Limited as operator for the Arwon #1 oil and gas exploration well in PEL 93 advises that the drilling rig well control system has been demobilised
from site and has arrived in Adelaide for repair and recertification to ensure safety and reliability.

The rig is still on location and is undergoing additional maintenance work whilst the well control system in under repair. A further advice will be issued prior to
recommencing drilling operations.

The present timing estimate for completion of
the repairs, recertification and return to site is two weeks.

The Arwon #1 well has been safely cased with 9-5/8” surface casing to a depth of 735 metres. When drilling operations resume the well will be re-entered and drilled
to plan to evaluate the primary targets in the McKinla y, Birkhead, Hutton and the Patchawarra formations.

The status of Arwon # 1 is:
Location: PEL 93, 55km south-west of Moomba
Planned Total Depth: 1930 metres
Current depth: 790 metres
Operations: Suspended
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)