Stuart said the development well will be located about 480m west-north-west of Acrasia-1 and should enable more efficient drainage of the Acrasia field, which in turn will lead to greater production and cash flow.
Stuart also told the market that 27,765 barrels of oil have been produced, sold and transported to Santos, under an agreement with the Adelaide-based company.
"Production has been steady at approximately 450 barrels of oil per day from the upper Tinchoo Formation said of Acrasia-1. The well will shortly be allowed to flow at a higher rate as the next step in production trials," Stuart said.
Stuart added that the second well in the field, Acrasia-2, has been completed and will placed on an extended production test, with oil to be sold to Santos.
Finally, Stuart said it has no plans to issue more equity in the capital of the company after negotiating a debt facility with the National Australia Bank. Stuart is partnered in the Acrasia discovery by Beach Petroleum.
