Trefoil-1 Encounters Gas Shows

Australian Worldwide Exploration Limited reports that the Trefoil-1 well encountered a drilling break in the first of several potential sandstone reservoir objectives at a depth of approximately 2,732 meters. Elevated gas readings and good visual porosity were associated with the increased drilling rate. As a result of the gas shows, a decision was made to cut a core in the reservoir sequence.

The significance of the gas shows and the quality of the reservoir will be assessed following the interpretation of the core and electric log data. This additional information will be released to the market when the interpretation is completed.

AWE will only contribute 10.1% of the costs of drilling Trefoil-1 because of the financial carry by Wandoo Petroleum Pty Ltd, which resulted from our previously announced farmout of equity.

Trefoil-1 is the third well in AWE's current exploration and development drilling program in the offshore Bass Basin.

Participants in PEP T/18 P are Origin Energy as operator with 41.4%; AWE with 22.6%; CalEnergy with 23.5% and Wandoo Petroleum with 12.5%.