AWE updates on E. Java basin exploration activities

The following is the statement filed by AWE Limited with the Australian Stock Exchange on Tuesday.

East Muriah PSC

Pearl Energy (East Muriah) Ltd (?Pearl?), as Operator of the East Muriah PSC in the East Java Basin has advised that the East Lengo-1 exploration well started drilling on May 28, 2010. AWE Limited (?AWE?) has elected not to participate in the East Lengo-1 exploration well and Pearl will drill this well as a ?sole risk? well. AWE and Pearl each own 50% of the East Muriah PSC.

AWE retains the right to participate in a development of East Lengo, subject to paying a penalty out of the proceeds of the development.

AWE will not be releasing regular drilling reports regarding this well.

After the drilling of East Lengo-1, the rig will drill the Liyun-1 exploration well, which is targeting oil in reef structures in the eastern portion of the Bulu PSC (AWE 42.5%) where Pearl Energy is the Operator of the block.

Madura North PSC

AWE is pleased to report the recent award of the North Madura PSC to a joint venture comprising AWE and North Madura Energy Limited. This new PSC will be held 50:50 and will be operated by AWE.

The grant of the North Madura PSC is AWE?s fourth PSC in the prolific East Java Basin. (end of release)