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AWE Drills Ahead at Evandra Well

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AWE Limited reports that at 0600 hours Thursday the Evandra-2 well was drilling ahead in 6" hole at a measured depth of 6,230 feet (1,899 meters). During the week, the Evandra-1 well was successfully abandoned and the Evandra-2 side-track successfully drilled out of casing at a depth of 5,906 feet (1,800 meters). Progress for the week was 325 feet (99 meters).

Evandra -2 in Production License L1, onshore Perth Basin, is being drilled as a sidetrack from the existing Evandra-1 wellbore and is designed to test the oil potential of the Dongara reservoir over the Evandra structure. Evandra-1, drilled in 2005 did not intersect the Dongara reservoir, which is interpreted to be faulted out at the well location. However, Evandra-1 did encounter an oil column in the underlying tight Wagina Sandstone which tested oil at low production rates.

Additional prospectivity has been identified in close proximity to the side-track location. This prospectivity is also dependent on the presence of Dongara reservoir in the area.

AWE Limited (via subsidiaries) is sole-risking the side-tracking operation and will fund 100 percent of the work program.

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