The higher output and record oil prices helped boost Stuart’s revenue by 20% to $9.1 million.

Stuart managing director Tino Guglielmo attributed the increased production result to the completion of the Worrior-5 and Worrior-6 wells, which came online in October at a combined rate of 2500 barrels of oil a day.

“Increased prices and production are boosting cash flows for the company to apply to growth projects in the Gippsland Basin and at Port Bonython,” he said.

The company’s results were also supported by 14% higher oil prices in the quarter, up from $A82.08 to $93.18 a barrel.

Guglielmo said the company was going ahead with its plans to farm-in to a 50% interest in the offshore Gippsland Basin Vic-P53 permit, with an exploration well targeting the Bazzard structure planned for September 2008.

Bazzard has the potential for 50 million barrels of oil reserves. It was identified by a recent 3D seismic survey and has all the critical geological factors for an oil and gas accumulation.

During the quarter, the company drilled four exploration wells, of which Comic-1 in PEL 113 was completed as an oil production well and Doriemus 1 in PEL102 was cased and suspended as a potential producer. I

In PEL 93, the Rainbird-1 and Patron-1 wells were plugged and abandoned.

The company also shot the Rogan 3D seismic survey in PEL 102 and continued processing and interpreting seismic over its Cooper-Eromanga Basin tenements and the Gippsland Basin permit Vic P53.

Stuart’s 2007 Cooper-Eromanga Basin drilling program continues with its 50% interest in Cleansweep-1 in PEL 100, which spudded 11 days ago.