Trefoil-1 Not as Promising as First Thought

Australian Worldwide Exploration reports that the Trefoil-1 well was drilling ahead at a measured depth of 2,926 meters after cutting a core from 2,735 – 2,743 meters.

Logging while drilling operations have revealed that the sandstone reservoir in the cored interval is most likely to be water bearing despite the previously reported gas shows recorded during drilling operations. The well is planned to drill ahead to test further interpreted sandstone reservoirs within the Eastern View Coal Measures.

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