Origin Energy to Extend Trefoil-1Well

Australian Worldwide Exploration reports that the exploration well Trefoil-1, located in the Bass Basin permit T/18P, was at a measured depth of 3442 meters and changing the drilling bit prior to running back into the hole to continue drilling.

Since the last report on November 19th, good gas shows have been recorded in sands interbedded with shales over the gross intervals 2964-3000 meters, 3015-3044 meters and 3135-3156 meters, and in sands interbedded with volcanics over the gross intervals 3382-3387 meters and 3429-3432 meters. Furthermore, logs run during drilling show elevated resistivities corresponding to sands with gas shows supporting the presence of trapped hydrocarbons. Indications of live oil in the mud were also reported over the interval 3382-3387 meters.

In view of the continued hydrocarbon shows during drilling, the joint venture has agreed to extend the total depth from 3154 meters to 3527 meters. Thereafter wireline logs will be run and formation pressures and samples taken to confirm the presence of hydrocarbons and to determine the quality of reservoirs intersected in the well. Not until this information is to hand can any inferences be drawn on the significance of hydrocarbon indications observed to date.

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

"These gas and oil shows are stronger than those reported last week and may ultimately prove to be commercially significant. However, we caution investors that we need to await the results of all of the wireline logging operations, including formation sampling, prior to drawing any conclusions as to the commercial significance of the shows."

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