Yolla Production Platform Installed Offshore Australia

Australian Worldwide Exploration Limited says that a key milestone has been reached in the development of the Yolla gas and condensate field and the BassGas Project.

Following completion of the platform construction phase during late February, the Yolla production platform has been transported to Bass Strait and is now installed at the Yolla field location. This is an important step in the ongoing development of the BassGas project which is expected to be producing gas by the end of the third quarter of 2004.

In addition to the platform milestone, the BassGas joint venture has completed the offshore pipeline and shore crossing at Kilcunda and is nearing completion of the onshore pipelines.

Steady progress is also being made on the construction at the Lang Lang gas plant. The remaining elements of the BassGas project include the drilling of the 2 development wells, (Yolla-3 and –4, which are scheduled to be drilled commencing May 2004) and completion and commissioning of the facilities.

Commenting on the BassGas milestone, AWE's managing director Mr. Bruce Phillips said:

"Commissioning of the BassGas project will be an important step in the corporate development of AWE, as the project represents the first major step towards a long term cashflow and profit stream for the Company.

The completion of platform construction and its installation at the Yolla field removes a significant risk in delivering the project on schedule."

Participants in T/L 1 and the BassGas Project are Origin Energy as operator with 37.5%; AWE Petroleum with 30% and CalEnergy with the remaining 20%.