AWE: Northwest Natuna PSC operations update

(May 30, 2016) -- AWE Limited advises that as at 09:00 hours (9.00am) AEST on 30 May 2016, the AAL-4X appraisal well had reached Total Depth (TD) at 1246m Total Vertical Depth Sub Sea (TVDSS) and wireline logging operations are underway across the target K Sand and G Sand reservoirs.

The primary target G Sand reservoir was intersected on prognosis at 1176m TVDSS after encountering the secondary target K Sand at 1131m TVDSS. Both reservoirs have been fully cored for further analysis and oil shows have been observed in both sands. Following wireline logging, each reservoir is planned to be Drill Stem Tested.

The well is being drilled in water depth of approximately 72m using the Raniworo jack-up drilling rig and is forecast to take approximately 48 days in total to complete.

The Northwest Natuna PSC is located offshore Indonesia in the Natuna Sea and includes the Ande Ande Lumut (AAL) oil project. The AAL project comprises the K Sand reservoir (101 million barrels gross recoverable oil, net 24.3 million barrels of 2P Reserves and 1.7 million barrels 2C Contingent Resources to AWE) and the underlying G Sand reservoir.

The AAL-4X appraisal well?s primary target is the G Sand reservoir, which is estimated to contain 289 million barrels gross oil in place with 36 million barrels gross recoverable oil (net 8.4 million barrels 2C Contingent Resources to AWE). Appraisal of the G Sand will facilitate the preparation of a Plan of Development for this resource, which could be developed in conjunction with the already approved K Sand development.

The Joint Venture partners in the Northwest Natuna PSC are: AWE Limited (via subsidiaries) with 50 percent interest, and Santos Limited (Operator) holds the balance. (ends)