AWE Spuds Waitsia-2 Appraisal Well in Western Australia's Perth Basin

AWE Limited, the Operator of Permits L1/L2 in the Perth Basin, Western Australia, disclosed Monday that the Waitsia-2 appraisal well commenced drilling operations at 18:00 hours (6:00 pm) AWST on Sunday, June 28.

As at 06:00 hours (6.00am) AWST today, the well was at 974 feet (297 meters) Measured Depth below Rotary Table (MDRT) in a 17.5 inch hole. The well will be drilled to a planned section depth of 4,249 feet (1,295 meters) MDRT before installation of the 13.375 inch surface casing.

The Waitsia-2 well will be drilled to a planned maximum total depth of 12,477 feet (3,803 meters) MDRT and is forecast to take approximately seven weeks in total to complete. The well is designed to test the gas potential in the southern extension of the Waitsia Field, comprising primary targets in the deep conventional formations in the Kingia and High Cliff Sandstones.

If the results are positive, AWE may undertake a flow test of the Waitsia-2 well and the well may be completed as a production well for a potential future field development. The approved work program for the Waitsia-2 appraisal well does not include hydraulic fracture stimulation.

The Waitsia-2 appraisal well is located on agricultural land approximately 10.3 miles (16.5 kilometers) east-southeast of Dongara, Western Australia, and 3.5 miles (5.6 kilometers) south-southwest of Waitsia-1. The well is the last of a three well drilling program planned for the Perth Basin in 2015.

The Joint Venture partners in L1/L2 are:

• AWE Limited (via subsidiaries) (Operator) - 50.0 percent
• Origin Energy Resources Limited - 50.0 percent