“Stuart’s share of oil production in December was 82,000 barrels, a 34% increase on November’s record performance,” Guglielmo said.

Stuart produced 197,000 barrels of oil [Stuart’s share] for the second quarter of the 2005 financial year and delivered half-year production of 308,000 barrels [Stuart’s share], both record results, according to Guglielmo.

"We have focussed on growing production during this half year and have transformed Stuart into a strong cash generator,” he said.

“Our objective is to maintain production at these levels for as long as possible. These production levels are comfortably above hedged volumes with any oil produced above 45,000 barrels per month selling for around $A52 per barrel at current oil prices.”

Guglielmo said the company’s strong production performance was driven by its 70%-owned Worrior and 35%-owned Derrilyn fields, with smaller contributions from first production from Harpoono and Reg Sprigg West.

The Acrasia field was continuing to produce at a modest rate, he said.

"Stuart's focus in the field over the next few months has turned to planning for a high- impact 2005 drilling campaign, Mr Guglielmo said.

The program would consist of up to eight wells. It was due to begin in late March or early April with the drilling of Baystone, an oil and gas exploration well on trend with the Reg Sprigg discoveries in PEL 90, he said.

Drilling rig slots were currently being secured for the balance of the program after Baystone. Stuart said it would release an updated 2005 drilling schedule as soon as it was available.