The half year net profit of $1.528 million came from earnings before interest, tax, depreciation, depletion and amortisation of $2.268 million. While the company generated $3.557 million from operating activities compared to $0.365 million in the previous half year.

"This result reflects the company's continued success following the implementation of its growth strategies. It provides a solid platform for the company's future growth." Stuart's chief executive officer, Tino Guglielmo, said.

"This result includes less than one month's production from the Worrior field which continues to produce in excess of 2000 barrels of oil per day."

"As reported previously we expect to produce 300,000 to 350,000 barrels in the 2003-04 financial year which should deliver an outstanding financial result," he said.

Stuart's share of the half year production and sales from the Acrasia and Worrior fields totaled 129,449 barrels, compared to total company production of 54,060 barrels in the previous corresponding period.

The production increase achieved in Acrasia was due to the installation of artificial lift in the Acrasia field and a recompletion to the Hutton zone. Acrasia produced 106,635 barrels in the half year. The new Worrior field discovery produced 22,814 barrels in the half year. Stuart is currently operating approximately 2,600 barrels of production per day, of which approximately 72% is attributable to Stuart.

During the period Stuart drilled two successful exploration wells. The Worrior #1, which was completed as an oil producer with reserves of 3.12 million barrels, [Stuart Share 2.18 million barrels] and the Kiwi # 1 exploration well which was cased and suspended as a future gas producer.

Stuart will increase its exploration effort during 2004 with the drilling of a minimum of four wells. Subject to farmouts, currently under negotiation, the drilling program may be extended to eight wells.