Stuart said the well will be the first drilled in the South Australian sector of the Cooper Basin, independent of the Santos-led consortium which held the region under title continuously from 1954 to 1999.

Stuart Petroleum's planned drill program follows the signing of groundbreaking agreements in October 2001 between the South Australian Government, Native Title claimants and seven exploration groups.

Thanks to the agreements, explorers have committed $45 million in exploration spending over 11 new licences for the Cooper Basin. Stuart Petroleum has a 75% interest in the Acrasia-1 well and said it plans to drill up to three wells in a $3.5 million program over the next six months.

An extensive seismic appraisal of the Acrasia-1 prospect has estimated potential oil reserves in the vicinity of 4.7 million barrels. The Acrasia well will be drilled to a depth of approximately 2,300 metres and will target a four-way dip closure, 3.8km northeast of Santos' Reg Sprigg oilfield.

Stuart Petroleum has also reached agreement with Cooper Energy NL in relation to work which will earn interest for Cooper Energy in PEL 90 Maribu Block and in PEL 93. In PEL 90 Maribu, Stuart Petroleum (operator) will retain a 75% participating interest and Cooper Energy will earn a 25% interest upon its funding of 50% of the cost of three wells and 400 km of seismic.

In PEL 93, Stuart Petroleum (operator) will retain a 75% interest and Cooper Energy will earn a 25% interest upon its funding of 50% of the cost of two wells and 250 km of seismic. In addition to its holdings in PEL 90 Candra, PEL 90 Maribu and PEL 93, Stuart Petroleum is also the successful applicant (100%) for two further Cooper Basin acreage release blocks, CO99C Packsaddle and CO2000F Priscilla.