A short production test has begun over each individual zone which will be completed by Thursday, when the well will then commence an Extended Production Testing (EPT) from the McKinlay zone.

The EPT on the McKinlay zone will a target flow rate of between 1200 and 1600bopd with the oil to be transported to the Santos operated Moomba facility for sale.

During completion operations brief clean-up flows were conducted on each zone and yielded 1585 barrels of oil per day (bopd) at 63 psi on a 34/64ths inch choke from the McKinlay zone; 3000bopd at 221 psi on a 34/64ths inch choke from the Birkhead zone and 815bopd at 20 psi on a 34/64ths inch choke from the Hutton zone, which was still cleaning up when the flow period was terminated.

The Birkhead clean up flow was significantly higher than expected, seven times the rate achieved from the initial drill stem test. The original drill stem test straddled the oil/water contact and flowed fluid to surface at a rate of 2,000bopd of which about 20% was oil (400 bopd). The clean up flow was recorded above the oil/water contact in this reservoir.

"You can understand why we are so excited about the future production capacity of this well when the Birkhead reservoir originally flowed 2,000bopd of fluid to surface, of which about 400 barrels were oil, and now flows 3,000bopd of oil on clean up," said Cooper Energy chairman, Greg Hancock.

"The full commercial significance of the higher Birkhead flow rate will not be completely known until a pipeline study is completed and a pipeline is built in 2004," he said.

The Joint Venture is planning a 3D seismic survey to more accurately delineate the field and site at least one additional development well. The survey will also focus on the significance of the gas zone in the Patchawarra where preliminary data indicates this zone may contain between five and 10 BCF of proved and probable original gas in place.

The survey is currently scheduled for April 2004 and drilling is expected to commence in late 2004.

Studies to confirm the economic feasibility of an oil export pipeline have begun and will be completed to allow construction in 2004 subject to economics and approvals.

Participants in the PEL 93 Pando Block Joint Venture are Stuart Petroleum (operator) 70% and Cooper Energy 30%.