Energy World Corp.: Update on Sengkang LNG project

(20 August 2012) -- Further to the company?s recent announcement on 14 August 2012 in relation to its Sengkang LNG Project, end the arrival major equipments and two cold boxes on site, the second shipment of major equipments including the further two cold boxes is now offshore, after a five week delay at Port Headland, Australia due to port congestion, and is awaiting to be offloaded at the end of the Indonesian national holiday. The Directors are pleased to provide the following confirmations and update regarding the Sengkang LNG Project?s and timetable.

Although the company has experienced earlier delays to the expected timetable for the Sengkang LNG Project pending by BPMIGAS of our Plan of Development for our WASAMBO gas field, we have been able to avoid a ?cost blow-out? or indeed any significant increase to the budgeted total capital cost because our contract for our land, major equipment and EPC contract were placed in 2007, 2008 and 2009.

As reported to date, total capcital expenditure for Sengkang LNG Project, that is the cost of major equipment, engineering and construction necessary for LNG faclity to enable production of 2 MTPA of LNG, is estimated to be USD 352 million which remains materially consistent with the bugdet initially outlined in the Company?s 2008 Annual Report Total incured project costs as of 30 June 2012 are approximately USD 224 million, which includes approximately USD 200 million of capital expenditure for the Sengkang LNG Project and approximately USD 24 million of additional related costs, in particular land acquisitions cost and incurred and inccrued finance charges.

As announced on 17 June 2011, BPMIGAS approved our Plan of Development necessary for the initial production, processing and supply of gas from our WASAMBO gas field. The scope of work under the Plan of Development envisages an estimated expenditure of up to USD 88 million (which will be cost recoverable by us through the Company receiving an increased share of gas sale proceeds). Related work programs and budgets for drilling and seismic work have been agreed with BPMIGAS for expenditure for the calendar years 2012. We expect to continue to development commented after 30 June 2012. We expect to continue to develop our gas resource, if justified, and so incur further capital gas field development under further Plant of Development to be with BPMIGAS. (ends)