Stuart's sales for the half year were up 138% on the same period last year and are forecast to hit between 300,000 to 350,000 barrels of oil for the 2003/2004 period.

Stuart said it started production from the Worrior-1 well during the quarter at around 1600 barrels of oil per day to the partners..

This marked increase in production has been accredited to increased offtake at Acrasia and the new production from Worrior, with both generating a total of around 1,600 BOPD and rising. This figure will probably increase when planned work at Worrior will increase production.

With that in mind, Stuart announced in the report that it was commencing a scoping study to see the feasibility of constructing a permanent Worrior production facility, which would include water separation/disposal facilities, an artificial lift and an export pipeline. Similar facilities are also being incorporated in an upgraded central production facility at Stuart's Acrasia fields.

The fourth quarter also saw continued seismic surveys at the company's PEL's 90 and 113 blocks. Mapping at Block PEL 102 will start this year and the recent discovery of gas at Yarrow in neighbouring PEL 103 bodes well for this block's prospectivity.

Stuart's drilling activities have also been fruitful this quarter with the spudding of the Kiwi No.1 well on 15 October 2003. It was dug to a depth of 2,908 metres and cased and suspended for completion as a future producer. Estimates have been put forward predicting the Kiwi structure as having 3.6 BCF OGIP.

The company was also awarded "low supervision" status for seismic and drilling operations under the SA Petroleum Act (2000). This was issued by South Australia's Department of Primary Industries and Resources and is in recognition of Stuart's excellent operational track record and the systems it has in place to ensure quality, health, safety and environmental objectives.