Release: AWE: Update on Indonesian exploration

(18 December 2007)--The Operator of the Bulu PSC reports that the exploration drilling programme has been delayed due to issues with the drilling rig. These issues are currently expected to be rectified over the next 1-2 months.

There is no cost exposure to Australian Worldwide Exploration Limited (AWE) due to this delay.

AWE continues to view the Bulu PSC as a high quality exploration opportunity. The joint venture plans to drill 2 wells in the Bulu PSC, Lisah-1 and Lengo-1, which will be followed by an extensive 3D seismic survey.

The Bulu PSC is located in the East Java Basin covering an area of approximately 3,495 square kilometres and located approximately 40 kilometres off the northeast coast of East Java in the East Java Sea. The area has water depths of up to 60 metres.

The East Java sedimentary basin is a significant oil and gas producing region and the area surrounding the Bulu PSC contains a number of oil and gas accumulations, including the important Pangkah, Poleng and Kepodang fields.

Participants in the Bulu PSC are: AWE 42.5%, PearlOil (Satria) Limited (Operator) 42.5%, PT. Satria Energindo 10.0% and PT. Satria Wijayakusuma 5.0%. (end of release)