Stuart, which expects to produce between 575,000 and 625,000 barrels of oil for the 2006-07 year, said the program comprised development drilling, fracture stimulation and field optimisation.

In the first phase, the company is currently contracting rigs to drill two development wells in May or June, identified from the re-mapping of existing fields.

Once the development drilling is complete, Stuart plans to start a six-well exploration program by June.

The second phase involves fraccing the Might and Power-1, Dunoon-2 wells and yet-to-be-drilled Padulla-5, if the economics permit, in May.

Once flow lines have been constructed, Stuart expects to place these wells on production in July.

Thirdly, the company plans to maximise production from each of its 18 existing oil production wells.

“For example, the Revenue-1 well commenced production from the McKinlay Formation during the first week of March after being changed from the Birkhead Formation,” Stuart managing director Tino Guglielmo said.

“The initial rate has exceeded 800 barrels of oil per day (Stuart’s share being 530bopd) compared to 150bopd prior to the change.”

The company also plans to increase the artificial lift capacity at the Worrior and Padulla fields, along with pump upgrades at Arwon and Acrasia.

Meanwhile at Derrilyn, Stuart predicts full production will resume for the first time in over a year as the bottlenecks at Limestone Creek are resolved.