Martha-1 Well Offshore Australia Encounters Gas

Australian Worldwide Exploration Limited, on behalf of its wholly owned subsidiary Peedamullah Petroleum Pty Ltd, reports that the Martha-1 well has reached its total measured depth of 1,800 meters and is currently undergoing wireline logging operations. The well was drilled by Diamond Offshore's semisub, Ocean Patriot.

Preliminary logging data indicates Martha-1 has intersected 24.5 meters of gas-bearing sandstones.

Martha-1 is an exploration well located approximately 18 kilometers north of the Casino gas field, which was recently sanctioned for development by the VIC/P 44 joint venture.

Commenting on the well results, AWE's managing director Mr. Bruce Phillips said: "Martha-1 is a new gas field discovery and is very encouraging for the prospectivity of the Vic/P44 area.

"However, in this instance, Martha is unlikely to be the significant commercial success we were seeking for our shareholders. Logging operations will continue over the next few days to further evaluate the discovery."

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