The Padulla development, 20 km south-west of the Worrior oilfield, will initially involve the drilling of four wells and a further appraisal well.

The field contains an estimated one million barrels of recoverable oil, Stuart said.

“This field will have a material impact on Stuart’s business,” managing director Tino Guglielmo said

“The multi well development program should boost Stuart’s production in 2006.”

Padulla-1 is now likely to be brought into production before Christmas via an extended production test following completion and fracture stimulation, he said.

In addition, the company has recently completed its sixth oilfield in the basin, the Arwon discovery, which is being connected to the Worrior oil facility.

Guglielmo added that Stuart had started drilling the nearby Hiraji oil target, a shallow structure 4.5 km from and on trend with Padulla.

Stuart is also currently drilling the 100% owned Harry-1 oil and gas exploration well in the northern part of the Cooper Basin.

Stuart said it was on track to meet record production of 900,000 barrels for this financial year.

“This will be a new record for Stuart, consolidating another year of growth and building on the financial strength of the company,” Guglielmo said.

Production to the end of October totaled about 260,000 barrels. He said Stuart has averaged A$70 per barrel, after hedging, for oil sales so far this financial year. This represents a gross margin of about A$40 per barrel.

After a record 2004/05, Stuart’s balance sheet contains cash and receivables as of today of $13 million with no debt, Guglielmo said.