The JV last month completed drilling of the Acrasia-1 well, which was the first new discovery well by an independent operator in the region in more than 20 years and according to Stuart, indicated a resource of approximately 3.7 million barrels of oil in place.

"Following the success of Acrasia-1, we have decided to drill the Acrasia-2 appraisal well west of the first well," said Stuart Petroleum's operations director, Mr Rod Hollingsworth. "As Acrasia-1 is located in the eastern end of a very elongated structure, there is the potential to increase our current estimates of oil in place by drilling further to the west along structure."

Acrasia-2 is also being designed to serve as a second production point along the Acrasia structure, Mr Hollingsworth added.

The JV also announced it plans to begin production from the Acrasia-1 well within the next three weeks, firstly as a production testing program then moving into full commercial production. Initial production rates are expected to be in the order of 500 barrels of oil per day (bopd) then building gradually to approximately 1000 bopd.

The likely spud date for Acrasia- 2 well will be end of May or early June, according to Mr Hollingsworth. Both wells are located in PEL 90 in which Stuart Petroleum has a 75% interest and is the operator while Beach is earning interest on the remaining 25%.