The Stuart Story …
Stuart was established in 1993 as Cobalt Resources NL to conduct business as a mineral exploration Company. It subsequently changed its name to Stuart Minerals NL.
Until 1999, the Company explored in South Australia, Queensland and Western Australia for ore deposits containing heavy mineral sands such as rutile, zircon and ilmenite and for deposits containing metals such as copper and associated minerals including uranium, gold and cobalt.
1999/2000
In 1999, the Company changed its name to Stuart Petroleum NL and announced a rights issue comprising 28.82 million shares to raise $5.764 million with which to conduct petroleum exploration within two licence areas awarded during the year in the Cooper/Eromanga Basin of South Australia – CO98E (now PEL 90) and CO98H (now PEL 93). The issue of licences was subject to entering into a Native Title Agreement for each area.
The Board of Directors at 30 June 2000 comprised Mr. John G Branson, Mr. Roderic J S Hollingsworth and Mr. Neville W Martin, all of whom were appointed 9 April 1999.
2000/2001
A third Cooper Basin licence area - CO99C (now PEL 102) was awarded by the South Australian Government in 2000 and the Company announced it would commence oil and gas exploration upon Native Title Agreement and the issue of licences covering all three areas awarded.
Stuart disposed of its mineral assets in 2000 to Gunson Resources Limited and distributed the proceeds of the sale in specie to Stuart shareholders.
2001/2002
Licences were issued for PEL 90 and PEL 93.
Mr. David B Clarke was appointed a Director on 12 December 2001. Mr. Neville Martin resigned as a Director on 28 June 2002.
In 2001, a fourth Cooper Basin licence area was awarded – CO2000F (now PEL 113) and systematic seismic remapping and geological evaluation of each area during the year resulted in the Company’s prospect and lead portfolio reaching a total of 103 drillable and potentially drillable structures.
The first well in Stuart’s history, Acrasia 1, was drilled in March/April 2002 following the issue of PEL 90. The well discovered oil and was completed for production.
Stuart became a Limited Liability Company during the year following Registration as Stuart Petroleum Limited.
2002/2003
Licences were issued for PEL 102 and PEL 113.
Acrasia 1 in PEL 90 commenced an extended production test on 19 July 2002.
Acrasia 2 commenced drilling in July 2002. It was completed as an oil producer and commenced an extended production test in October 2002.
Acrasia 3 followed and was also completed as an oil producer. A production licence covering the field (PPL 203) was issued in 2003.
The Karbine 1 oil exploration well was drilled during the year in PEL 93. The well was plugged and abandoned in December 2002 following the testing of an oil show in the McKinlay Member of the Mooga Formation.
Mr. Giustino (Tino) Guglielmo joined the Company as Chief Executive Officer on 19 May 2003.
The Company recorded its first Net Profit after Tax of $735,000 in 2003 from 122,873 barrels of oil production with Total Assets of $9.9 million. Reserves at year end totalled 1.2 million barrels of oil.
2003/2004
During the year, the Company drilled seven exploration wells resulting in five discoveries:
2003/2004
Well Exploration | Licence | Equity (%) | Result |
|---|
| Worrior 1 |
PEL 93 |
70.00 |
Oil discovery |
| Kiwi 1 |
PEL 90 |
75.00 |
Gas discovery |
| Galilee 1 |
PEL 90 |
75.00 |
Plugged and abandoned |
| Saintly 1 |
PEL 113 |
66.67 |
Plugged and abandoned |
| Derrilyn 1* |
Derrilyn Unit |
35.00 |
Oil discovery |
| Reg Sprigg West 1** |
RSW Unit** |
18.75 |
Oil and gas discovery |
| Harpoono 1 |
PEL 113 |
66.67 |
Oil discovery |
Note: * Derrilyn 1 prospect overlapped into PEL 113. It was drilled in PEL 114 and the oil discovery was subsequently ‘unitised’ as the Derrilyn Unit.
** Reg Sprigg West 1 prospect overlapped into PEL 90. It was drilled in PEL 194 and the oil discovery was subsequently ‘unitised’ by agreement as the RSW Unit.
The Worrior 1 well commenced production in November 2003.
The Company reported an increased Net Profit after Tax of $3.745 million from production of 328,000 barrels of oil with total assets of $18.5 million. Reserves at year end totalled 3.4 million barrels of oil.
2004/2005
Mr. Giustino (Tino) Guglielmo was appointed Managing Director on 20 January 2005. Mr. Rod Hollingsworth resigned as a Director on 16 February 2005.
During the year, the Company drilled five wells resulting in one oil discovery and one successful oil development well.
2004/2005
Well Exploration | Licence | Equity (%) | Result |
|---|
| Arwon 1* |
PEL 93 |
75.00 |
Oil discovery |
| Baystone 1 |
PEL 90 |
75.00 |
Plugged and abandoned |
| Beeville 1** |
PEL 105 |
20.00 |
Plugged and abandoned |
| Jezabeel 1 |
PEL 113 |
67.00 |
Plugged and abandoned |
| Development |
|
|
|
| Worrior 2 |
PEL 93 |
70.00 |
Oil producer |
Note: * Stuart subsequently acquired 100% equity in the field.
** Beeville 1 was drilled in PEL 105 as a farm in well to the licence. As the well was plugged and abandoned, Stuart did not earn an interest.
The Company reported an increased Net Profit after Tax of $10.161 million from production of 832,000 barrels of oil with total assets of $30.1 million. Reserves at year end totaled 2.6 million barrels of oil.
The Company declared its maiden dividend of 2 cents per share, paid on 15 September 2005.
The Company was rewarded with industry recognition of its performance at the 2005 Good Oil Conference when it received the RIU Good Oil producer award for 2005.
2005/2006
During the year, the Company drilled 18 wells resulting in four oil discoveries and seven successful oil development wells.
2005/2006
Well Exploration | Licence | Equity (%) | Result |
|---|
| Padulla 2 |
PEL 113 |
100.00 |
Oil discovery |
| Harry 1 |
PEL 90 |
100.00 |
Plugged and suspended |
| Hiraji 1 |
PEL 113 |
66.67 |
Plugged and abandoned |
| Rogan 1 |
PEL 102 |
100.00 |
Plugged and abandoned |
| Toparoa 1* |
Derrilyn Unit |
35.00 |
Oil discovery |
| Dalray 1 |
PEL 93 |
70.00 |
Plugged and abandoned |
| Rimfire 1 |
PEL 113 |
66.67 |
Oil discovery |
| Revenue 1 |
PEL 113 |
66.67 |
Oil discovery |
| Development |
|
|
|
| Acrasia 4 |
PPL 203 |
75.00 |
Oil producer |
| Derrilyn 2 |
PPL 206 |
35.00 |
Oil producer |
| Worrior 3 |
PPL 207 |
70.00 |
Oil producer |
| Derrilyn 3 |
PPL 206 |
35.00 |
Oil producer |
| Worrior 4 |
PPL 207 |
70.00 |
Oil producer |
| Harpoono 2 |
PPL 209 |
66.67 |
Oil producer |
| Harpoono 3 |
PPL 209 |
66.67 |
Suspended oil well |
| Padulla 3 |
PEL 113 |
100.00 |
Oil producer |
| Padulla 4 |
PEL 113 |
100.00 |
Plugged and abandoned |
| Padulla 7 |
PEL 113 |
100.00 |
Plugged and abandoned |
Note: * Toparoa 1 was drilled in PEL 113 and overlapped the Derrilyn Unit. It was subsequently unitized as part of the Derrilyn Unit.The Company also commenced its review of the potential for the development of a Diesel Fuel Storage and Refinery project at Port Bonython in South Australia during the year.
The Company reported Net Profit after Tax of $7.866 million from production of 745,000 barrels of oil with total assets of $49.5 million. Reserves at year end totalled 2.2 million barrels of oil.
The Company declared its second dividend of 2 cents per share, paid on 15 September 2006.
2006/2007
During the year, the Company entered into an agreement to farm in to 50% of the offshore Gippsland Basin exploration permit Vic P53 with the Albers Group and announced a 50/50 joint venture with the Scott Group of Companies to pursue the development of a major fuel terminal and micro refinery at Port Bonython.
The Company also announced it had entered into an agreement to farm in to 50% of the Cooper Basin licence PEL 100 with a consortium of existing licence holders including Cooper Energy Limited
The Company drilled six wells resulting in two oil discoveries and one successful oil development well.
2006/2007
Well Exploration | Licence | Equity (%) | Result |
|---|
| Light Fingers 1 |
PEL 113 |
65.00 |
Plugged and abandoned |
| Tawriffic East 1 |
PEL 93 |
70.00 |
Plugged and abandoned |
| Rising Fast 1 |
PEL 113 |
66.67 |
Plugged and abandoned |
| Might and Power 1 |
PEL 113 |
66.67 |
Oil discovery |
| Dunoon 2 |
PEL 113 |
66.67 |
Oil discovery |
| Development |
|
|
|
| Derrilyn 4 |
Derrilyn Unit |
35.00 |
Oil producer |
The Company reported Net Profit after Tax of $8.716 million from production of 523,000 barrels of oil with total assets of $48.6 million. Reserves at year end totalled 2.6 million barrels of oil.
The Company declared its third dividend of 2 cents per share, paid on 14 September 2007.
2007/2008
During the year, the Company pursued its farm in to 50% of the offshore Gippsland Basin exploration permit Vic P53 with the Albers Group and its 50/50 Port Bonython Fuels joint venture with the Scott Group of Companies.
The Company announced the first well drilled in the farm in licence PEL 100 – Cleansweep 1, discovered oil.
The Company applied for a number of new exploration licences in the Pedirka Basin - Poolowanna Trough. The licences will be issued following Native Title Agreement.
Nine wells were drilled resulting in two oil discoveries and two successful oil development wells. The two Worrior wells resulted in the addition of 500,000 barrels of oil to year end reserves.
2007/2008
Well Exploration | Licence | Equity (%) | Result |
|---|
| Comic 1 |
PEL 113 |
65.00 |
Oil discovery |
| Doriemus 1 |
PEL 102 |
100.00 |
Cased and suspended |
| Rainbird 1 |
PEL 93 |
2.00* |
Plugged and abandoned |
| Patron 1 |
PEL 93 |
2.00* |
Plugged and abandoned |
| Cleansweep 1 |
PEL 100 |
100.00 |
Oil discovery |
| Chester 1 |
PEL 113 |
100.00 |
Plugged and abandoned |
| Subzero 1 |
PEL 113 |
65.00 |
Plugged and suspended |
| Development |
|
|
|
| Worrior 5 |
PPL 207 |
70.00 |
Oil producer |
| Worrior 6 |
PPL 207 |
70.00 |
Oil producer |
Note: * Rainbird 1 and Patron 1 were drilled by Red Sky Energy who paid 98% of the costs to earn a 49% interest in the prospects. The wells were plugged and abandoned and no interest was earned. Stuart holds 70% of PEL 93The Company reported Net Profit after Tax of $13.177 million from production of 569,000 barrels of oil with total assets of $53.1 million. Reserves at year end totalled 2.6 million barrels of oil.
The Company declared its fourth dividend of 2 cents per share, paid on 19 September 2008.
2008/2009
The Company pursued its investments in the offshore Gippsland Basin project and the Port Bonython Fuels project.
In August 2008, the Company announced it had entered into an agreement to farm in to 50% of the offshore Timor Sea permit AC/P33 containing the Oliver 1 oil and gas/condensate discovery, approximately 700 km west of Darwin from the Albers Group.
In September 2008, the Company drilled the Bazzard 1 well in Vic P53 to test the potential of intra-latrobe sands thought to contain oil. The well was subsequently plugged and abandoned after failing to encounter commercial hydrocarbons.
In May 2009, the Company secured land for the project at Port Bonython under an agreement with the South Australian Government. On 25 May, the Company lodged a Development Application (DA) with the South Australian Development Assessment Commission for a determination in relation to the proposed Port Bonython Fuels project.
The Company is proceeding towards a Final Investment Decision scheduled for the fourth quarter of 2009 while waiting on the outcome of the DA review process.
The Oliver appraisal and development project proceeded on the basis of increases in hydrocarbon in place volumes and a flow on to recoverable estimates. Mean hydrocarbon in place volumes total 84 million barrels of oil and condensate in place (up from 56 million barrels) and 810 BCF of gas in place (up from 305 BCF). Mean recoverable oil and gas estimates increased to 32.6 million barrels, up 68% from 19.3 million barrels estimated in 2008. It is expected that the Oliver 2 appraisal well will be drilled late in 2009/early 2010.
The Company drilled two wells both of which were plugged and abandoned.
2008/2009
Well Exploration | Licence | Equity (%) | Result |
|---|
| Brew 1 |
PEL 113 |
65.00 |
Plugged and abandoned |
| Bazzard 1 |
VIC P53* |
50.00 |
Plugged and abandoned |
Note: * Stuart paid 100% of the cost to earn 50% interest in the prospect.The Company reported a Net Loss after Tax of $25.9 million from production of 338,693 barrels of oil. Total assets at year end were $52.2 million. Reserves at year end totalled 2.35 million barrels of oil.
No dividend was declared.
SUMMARY
Since commencing as an oil and gas explorer, Stuart Petroleum has drilled 34 exploration wells and 14 development wells. Over the period, the exploration drilling success rate (15 wells) is more than 44% and the development drilling success rate (12 wells) is more than 85%.
The Company has discovered over 9.4 million barrels of oil reserves since commencement and through 30 June 2009, has produced over 5.5 million barrels of oil from those reserves.
The Worrior oilfield, discovered in 2003, has produced over 3.1 million barrels of oil from currently assessed ultimate recoverable reserves of 5.3 million barrels of oil. It continues to produce strongly along with the Padulla, Acrasia and Harpoono Area oilfields.
Production from these fields has generated cash for re-investment while enabling the Company to maintain appropriate levels of liquidity. It continues to provide the foundation for future growth.
The Company reported profits in each year from 2003 to 2008 and in 2008, paid its fourth consecutive dividend.
The Company reported a Net Loss after Tax at 30 June 2009 mainly due to the write-off of costs associated with the drilling of the offshore Gippsland Basin Bazzard 1 exploration well. No dividend was declared for the year.
At 30 June 2009, Stuart Petroleum reported Total Assets of $52.2 million and Shareholders’ Funds of $29.6 million. The Company has achieved its position with 16 full-time staff at year end, supported by a small number of consultants.
The Company commenced its next phase of growth through participation in the Oliver oilfield appraisal and development project and the Port Bonython Fuels project.
Evaluation of the Oliver appraisal and development project proceeded on the basis of increases in hydrocarbon in place volumes and a flow on to recoverable estimates. Mean hydrocarbon in place volumes total 84 million barrels of oil and condensate in place (up from 56 million barrels), and 810 BCF of gas in place (up from 305 BCF). Mean recoverable oil and condensate estimates increased to 32.6 million barrels, up 68% from 19.3 million barrels estimated in 2008.
In May 2009, the Company secured land for the Port Bonython Fuels project under an agreement with the South Australian Government. On 25 May 2009, the Company lodged a Development Application (DA) with the South Australian Development Assessment Commission for a determination in relation to the proposed Port Bonython Fuels project.
The Company is proceeding towards a Final Investment Decision scheduled for the fourth quarter of 2009 while waiting on the outcome of the DA review process.
In the tradition of the explorer John McDouall Stuart, from whom the Company name was derived, Stuart Petroleum will continue its journey of discovery.
JOHN MCDOUALL STUART
John Stuart was one of Australia's foremost explorers, best remembered for forging a trail across Australia from south to north.
He was born in Scotland in 1815 and emigrated to South Australia at the age of 23. He gained experience as an explorer when, as a surveyor, he accompanied Captain Charles Sturt's exploration party to the Innamincka area of South Australia in 1844.
Between 1860 and 1862 Stuart made three attempts to cross the continent from Adelaide in the south to the northern coast and in July 1862 he reached the north coast at Chambers Bay.John Stuart died in 1866 having been physically weakened by the immense efforts that his exploration journeys required.
Stuart's success in finding a way to the north coast resulted in Darwin being settled, which in turn opened up the possibility of major pastoral and mineral development in the north of Australia.
The Stuart highway that connects Adelaide to Darwin and the major South Australian geological structure, The Stuart Shelf, are two of the many features that carry his name.
Stuart Petroleum Limited is proud to bear the name "STUART"