Drilling Commences on Pateke-2 Offshore New Zealand

Australian Worldwide Exploration reports that the Pateke-2 well has commenced drilling. The Pateke-2 well was preparing to drill ahead after running and cementing 30" conductor at a measured depth of 217 meters. This well is a re-drill of the Pateke-1 well, which was abandoned due to the settling of the 30" conductor.

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. 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 will test the third prospect in AWE's current exploration programme 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%