The figure was reached before interest, tax, depreciation, amortisation and exploration (EBITDAX) costs were taken into account.

It compares with the $6.1m EBITDAX the Adelaide-based company achieved in 2004.

Stuart expected to post a net profit after tax for this financial year of between $8m to $10m, up from $3.7m in 2003/4.

The record EBITDAX was driven by strong year-on-year production increases from about 320,000 barrels for last financial year to in excess of 810,000 barrels for 2004/5, in line with previous forecasts, the company said.

Rising production, particularly since last December, will allow the company to eliminate almost all of its debt by the end of this month, Stuart said.

The company had bank borrowings of almost $10m at the half-year ending 2004.

It said it had also used up all its prior-year tax losses and would be in a tax paying position this financial year.

Stuart has also reviewed the carrying value of exploration expenditure that will not contribute to current or future production.

As a result of this review, the net profit forecast includes a write down of the carrying value of capitalised exploration of about $7m.

Stuart is an exploration and production company with a market capitalisation of $54 million and assets only in South Australia’s Cooper Basin.