Stuart Petroleum advised the following update regarding the drilling of its Kerinna 2 exploration well.

Kerinna 2, located in PEL 516, is being drilled 700 meters northeast of the Kerinna 1 well which discovered oil in the Hutton Sandstone in 1984. The well, programmed to reach a total depth of approximately 1855 meters, is targeting a mean unrisked recoverable oil potential of between 250,000 and 300,000 barrels from the Hutton Sandstone.

Kerinna 2 will also evaluate additional recoverable oil potential in the Murta Formation and McKinlay Member of the Namur Sandstone.

•Location: PEL 516, Cooper Basin •Participant: Stuart Petroleum - Operator 100% •Spud Date: August 20, 2010 •Progress Report Date: 06:00 August 23, 2010 •Current Depth: 686 meters •Planned Total Depth: 1855 meters •Current Operation: Preparing to run 9 5/8" surface casing •Geology: On prognosis •Planned Work: Run and cement 9 5/8" surface casing, drill ahead in 8 1/2" hole to TD of 1855 meters.

Tags: Stuart Petroleum Limited