Australian oil company Stuart Petroleum is accelerating development studies for its Oliver oil field in the Timor Sea due to ongoing strong cash flow.
The company has a 50 percent interest in the offshore Timor Sea permit AC/P33. The permit contains the Oliver oil field, which has potential recoverable oil and condensate volumes of 19.2 million barrels, 9.6 million net to Stuart.
The development studies include reprocessing of 3D seismic date to provide a more detailed evaluation of the size of the structure. The company is looking to drill an appraisal well late 2009 or early 2010. Songa Offshore semisubmersible Songa Venus has been contracted to drill the well.
Other participants in the permit include Natural Gas Corp. and Auralandia with 15 percent interest each, Alpha Oil & Natural Gas with 7.5 percent and National Gas Australia with 12.5 percent.
Stuart also plant to accelerate development of its Port Bonython Fuels Project in South Australia.
Stuart’s hedge positions ensure an average oil price of AUD 100 (US$66) a barrel on 107,000 barrels of hedged production in 2009.