The controversial shale oil producer said its Stuart Stage 1 demonstration plant has achieved its longest production run, resulting in the project's biggest production quarter, with more production expected in September.

The $350 million plant produced a total of 121,000 barrels of oil during the 52 day run, which was completed on 31 August, and exceeded the plant's next longest continuous run of 32 days, achieved earlier this year.

Releasing Southern Pacific Petroleum's six weekly report detailing latest production figures for Stuart, SPP managing director, Jim McFarland, said the figures underlined that the plant's performance was continuing to improve.

"The run has also contributed to the plant's best-ever production quarter of 121,000 barrels at the end of August with more to come in September," Mr McFarland said.

The run included the largest monthly oil production yet achieved by the plant, producing 61,000 barrels of oil in each of July and August.

Mr McFarland said this year's total oil production of 276,000 barrels by the end of August already exceeded calendar year 2001 total production of 233,000 barrels.

The six weekly report also reported, on a year to date basis to 31 August, oil product sales have generated $17 million in net revenue after shipping costs and one-time naphtha storage costs incurred earlier in the year.

Oil product sales in 2002 included 195,000 barrels of ultra low sulphur naphtha (ULSN) to Mobil Oil Australia and 144,000 barrels of light fuel oil to the Singapore fuel oil market, SPP said.