The Adelaide-based company’s managing director Tino Guglielmo told shareholders at Tuesday’s annual general meeting that Stuart was looking outside Cooper exploration and production, as there were increasingly fewer opportunities.

“While we are open to opportunities in Australia, our experience is that value is hard to find and opportunities are hotly contested,” he said.

“As I have indicated in recent months, we are focusing on synergistic opportunities internationally.”

Guglielmo’s comments reiterate those made to Petroleum magazine recently.

“While the basin still has a high discovery rate, the finds are small,” he said.

“The Cooper is replete with low risk, low yield opportunities, but to step up to the next level we need to look outside the Cooper.”

Stuart’s first step overseas is expected to be into West Africa, he told shareholders.

“This year we expect to have secured project opportunities in West Africa,” he said.

“We have also commenced exploratory discussions with parties in other key areas.”

Diesel refinery

Meanwhile, Guglielmo said his company’s plans to build a diesel refinery in South Australia were “well advanced”, with project approval expected to be announced before the end of January 2007.

“As many of you may be aware, Stage 1 of the project involves the installation of a diesel distillation unit at a value of $26 million and will take some 12-14 months to complete,” he said.

“The project has a high value-add component to our crude oil and will support the impending mining boom in South Australia.”

The facility is designed to produce 100-150 million litres of diesel per annum – or 4000 barrels per day – and would be SA’s only operating diesel refinery.

In a statement to the Australian Stock Exchange, Stuart said that development work during the second half of this year had so far been better than expected. It added that new reserves could be about 1 million barrels of oil, increasing the company’s reserves by more than 30% to over 3MMbbl.