AWE farms in E. Java exploration block

Australian Worldwide Exploration Limited (AWE) announced on Monday it has entered into a farmin agreement to earn a 42.5 percent interest in the Bulu PSC offshore East Java basin.

Under the agreement AWE will constribute up to US$12 million to drill two offshore wells to earn the participating interest from Pearl Oil (Satria) Limited, a subsidiary of UAE-based Aabar Petroleum Investment Company.

After transaction completion, participants in the PSC would be: AWE (42.5 percent), Aabar (42.5 percent, operator), PT.Satria Energindo (10 percent) and PT.Satria Wijaya Kusuma (5 percent)

The PSC covers the area of 3,495 sq kms with water depth of up to 60 meters. Drilling activity in Bulu is expected to commence in the third quarter of this year with both of the Lisah-1 and Lengo-1 wells to be drilled in the campaign.(denny)