Drilling Commences at Martha-1 Offshore Australia

Australian Worldwide Exploration Limited, on behalf of its wholly owned subsidiary Peedamullah Petroleum Pty Ltd, reports that the Martha-1 well was spudded on October 20, 2004. Currently the well is at a measured depth of 122 meters and running 30" casing.

Martha-1 is an exploration well located approximately 18 kilometres north of the Casino gas field, which was recently sanctioned for development by the VIC/P 44 joint venture. The primary objective of Martha-1 is the Waarre Sandstone, which is the main gas bearing interval in the nearby Casino field.

On a "trouble free" basis, the Martha-1 well is expected to take approximately 18 days to reach its planned total depth of approximately 1,850 meters.

Commenting on the announcement, AWE's managing Director, Mr Bruce Phillips said:

"Martha-1 represents the start of an exploration campaign to pursue additional gas reserves in AWE's Otway basin acreage.

"The recent announcement of our Gas sales Agreement with Singapore Power (formerly TXU Australia) enables commercialization of successful gas exploration and Martha-1 is the first step in that goal.v "Success at Martha-1 would be an important step in AWE's growth plans in eastern Australia."

Participants in VIC/P 44 are Santos as the operator with 50%; Mittwell Energy with 25% and Peedamullah Petroleum with the remaining 25%.