Yolla-4 Intersects New Hydrocarbon Pool

Australian Worldwide Exploration reports that the Yolla-4 well is drilling ahead and has reached measured depth of 2,746 meters. Planned total depth is 3,248 meters.

A new hydrocarbon-bearing sand between 2458-2467m TVDss (true vertical depth below sea level), seemingly not present in Yolla 1 and Yolla 2, appears to have been encountered in Yolla 4 above the targeted main pay zones below 2700m TVDss. This sand exhibited up to 70% fluorescence and wet gas mud log shows during drilling and LWD (logs whilst drilling) supports that this sand is hydrocarbon-bearing. This sand will be further evaluated with wireline logs after the well reaches its planned total depth of 3040m TVDss."

Yolla-4 is the first of a two-well development drilling program on the Yolla gas and condensate field being undertaken by the Ensco 102 jack-up drilling rig. The development drilling is the last major task to be undertaken prior to first gas being produced by the BassGas Project by the end of Q3, 2004. The Ensco 102 rig will be stationed beside the Yolla "A" platform for the drilling of the development wells.

The Yolla field is located within the Tasmanian offshore production license, T/L1 approximately 95 kilometers southwest of Wilson's Promontory and 110 kilometers north of the Tasmanian coastline.

Following completion of the development drilling phase, the Ensco 102 drilling rig will be mobilized to drill the Trefoil-1 exploration well, approximately 40 kilometers west of the Yolla "A" platform.

Participants in T/L 1 are Origin Energy as operator with 32.5%; AWE Petroleum with 30%; CalEnergy with 20%; Wandoo Petroleum with 12.5%; and Origin Energy Northwest Limited with 5%.