Pateke-1 Well Offshore New Zealand to be Abandoned

Australian Worldwide Exploration reports that wireline surveys of the Pateke-1 wellbore have shown that the 9-5/8" casing has buckled due to the settling of the 30" conductor and drilling of Pateke-1 cannot be continued.

Following the abandonment of Pateke-1, the Ocean Bounty will be moved 50 meters and Pateke-2 will commence drilling. On a "trouble free" basis, the well is expected to take approximately 16 days to reach its planned total depth of approximately 3,927 meters.

Pateke-2 is an exploration well located approximately 4 kilometers north of the Amokura oil field. Pateke-2 is targeting oil in the Kapuni "F" sand reservoir, which contains oil at the adjacent Amokura and Tui fields.

Pateke-2 will test the third prospect in AWE's current exploration program in the offshore Taranaki Basin. Following completion of operations at Pateke, the joint venture plans to drill the Kiwi-1 well, located approximately 4 kilometers south west of the Amokura oil field.

Participants in PEP 38460 are:

AWE New Zealand Pty Ltd 20.0%
New Zealand Overseas Petroleum Limited (operator) 45.0%
Mitsui E&P New Zealand Limited 12.5%
Stewart Petroleum Company Limited 12.5%
WM Petroleum Limited 10.0%