Oil find lubricates prices [04apr06]

AN oil discovery sent shares in Adelaide companies Beach Petroleum and Stuart Petroleum surging to record highs on the stock exchange yesterday.

Stuart shares jumped 10.8 per cent or 15c to $1.54 after it announced it had found a new oil pool in the Harpoono field in South Australia's Cooper Basin.

Beach shares leapt 7.3 per cent, up 9c to $1.325, with the company also benefiting from a 40 per cent upgrade of its coal-seam gas reserves in Queensland.

Stuart managing director Tino Guglielmo said, with oil prices around $90 a barrel in Australian-dollar terms, the company was trying to get as much oil to market as possible. "The timing of this high-rate discovery could not have been better, with oil prices near record highs," he said.

The new oil pool discovery, in the Harpoono-2 well, flowed 1080 barrels of oil per day. "Following the evaluation program currently under way, the well will be completed for production through the existing Harpoono production facility where crude is sold via the Moomba processing facility," Mr Guglielmo said. The latest discovery put Stuart in good shape for a production rise next financial year and underpinned expectations of production of about 800,000 barrels this year.

Stuart holds a two-thirds interest in the Harpoono-2 well while Beach holds one-third.

Beach yesterday upgraded gas reserves at its Tipton West coal-seam gas project in Queensland by 40 per cent.

Beach managing director Reg Nelson said that he was confident the reserves rise could be further built upon.

"The significant upgrade of Tipton West's reserves so early in our commercial participation augurs well for early returns on this investment," Mr Nelson said.

Beach entered Queensland's coal-seam gas sector last September through a $35 million investment in the Tipton West project.

Beach yesterday released an updated drilling program schedule for 2006.

It comprises more than 30 oil and gas wells in regions including New Zealand, Bass Strait and Western Australia.

"It is by far the most comprehensive program that Beach has embarked upon and would rank among the most active petroleum exploration and development programs in Australia this year," Mr Nelson said.