Kan Tan IV Undergoes Repair; Drilling Halted at Hoki-1

The Kan Tan IV drilling rig has successfully completed the running and cementing of the 13-3/8" casing at 1,505 meters, as previously announced by AWE.

Subsequent to this previous announcement, the operator of the Kan Tan IV drilling rig, Maersk Drilling, has advised AWE that some essential repair work is required to ensure the ongoing safe operation of the drilling unit; such repair work was intended to be undertaken while the drilling rig was in transit from Australia to New Zealand, however was deferred due to weather. This work is primarily related to the drilling mast.

Maersk, to whose account the cost of rig time and repair expense will be attributable, has advised AWE that this work will take at least 7 days, after which the drilling of Hoki-1 will resume.