This comprises two exploration wells, two appraisal wells and eight development wells, the company said.

Santos, as operator of the Derrilyn Block in PEL 114, advised Stuart that it spudded the first well in this program, the Derrilyn-3 development well, last Sunday.

The well, which is 90m west-northwest of Derrilyn-1, was designed as the first offtake point for the McKinlay oil pool in the field, Stuart said.

“This well is required due to the continued strong performance of the two existing Hutton producers delaying McKinlay production,” managing director Tino Guglielmo said.

“The McKinlay will be brought into production as soon as practicable.”

The next well in the program to spud will be Worrior-4 in PEL 93/PPL 207. The well is to be drilled on the eastern edge of the Worrior field to target the Birkhead and McKinlay oil pools, as well as appraising the Patchawarra gas and fractured basement oil play in the Pando Formation, which recovered oil in Worrior-3.

Meanwhile, Stuart says the recently acquired 3D seismic program continues to uncover exciting follow-up opportunities near Harpoono in PEL 113, which is currently producing around 100 barrels per day.

It said the Harpoono-2 and Harpoono-3 development wells would be drilled in March or April to drain the Murta reservoir found in Harpoono-1. The joint venture with Beach Petroleum, expects the Rimfire 1 exploration well to be drilled in April to test a target 2.8km east-northeast of Harpoono-1.

Rimfire is currently mapped as a structural/stratigraphic trap with the potential to hold P10 oil in place of 2 million barrels.

“Our geological team is also working on other potential structures identified by the recent 3D seismic in the area,” Guglielmo said.

In addition, Stuart is targeting a 1 million barrel reserve potential in the Padulla development in the south-western corner of PEL 113. Drilling of Padulla-3 is expected to start towards the end of March, to follow up the Padulla-2 Murta Formation oil discovery in 2005.

Five Padulla appraisal and development wells will be drilled to determine the extent of the Murta oil reservoir and to provide drainage points, Stuart said.

“Development planning is well advanced for the Padulla discovery,” Guglielmo said.

“Drilling of these five appraisal and development wells will finetune our thinking on the final development.”

Production testing of the discovery well, Padulla-2, will start in April after the production facility is completed, the company said.

Dalray, an adjacent prospect in PEL 93, which is south-west of Padulla, will likely be drilled in May following the Padulla program, Stuart said.

“The most pleasing aspect of Stuart’s past drilling program is that it has uncovered numerous additional highly prospective drilling opportunities right in our own back yard,” Guglielmo said.

“These opportunities continue to fuel the company’s growth as one of the newest mid-cap oil producer in Australia.”