AWE Finds Oil at Pateke-2 Well

Australian Worldwide Exploration Limited reports that logging while drilling measurements in the Pateke-2 well indicates a 13 meter oil column at the top of the primary target, the Kapuni F Sand.

Log character is the same as in the previous nearby wells at Tui and Amokura, indicating excellent reservoir quality.

The oil-water contact in Pateke-2 is at the same depth as in the Amokura-1 well, 4km to the south. This implies that both wells have drilled into the same pool of oil.

The full size of the Pateke-Amokura field will be determined once post-drill studies have been completed.

As soon as wireline operations at Pateke-1 are completed, the drilling rig will move to drill the Kiwi-1 well 4 km southwest of Amokura-1.

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

"This is a very encouraging result for building another cornerstone asset for AWE, along with our other cornerstone interests in the Bass, Otway and Perth Basins.

"The joint venture has now drilled three exploration wells in the greater Tui area in the western Taranaki Basin, resulting in three new oil field discoveries."

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%