AWE reported that as at 06:00 Yemen time (-7 hrs AEST) on July 28, the Jebel Al Milh-1 well was at a depth of 3,677 meters and was pulling out of hole. This is in preparation for running logs in the 121/4" hole section, in line with the pre-drill plan, after having touched basement. Hydrocarbon shows have continued to be observed while drilling through to the current depth. Progress for the week was 317 meters.

Jebel Al Milh-1 is located 16 kilometers north-northeast of the Al Meashar-1 well, which recently discovered oil in the basement. The primary target is fractured Pre-Cambrian basement.

The participants in Block 7 are:

• ARC Energy Holdings Ltd 21.25%
• Oil Search (ROY) Ltd (Operator) 34.00%
• Kuwait Foreign Petroleum Exploration Co. (Aden) Ltd 21.25%
• Yemen General Corporation for Oil and Gas 15.00%
• Mitsui E & P Middle East B.V 8.50%