Magnolia-1 Preliminary Results Disappointing

Australian Worldwide Exploration Limited, on behalf of its wholly owned subsidiary AWE Timor Sea Pty Ltd, reports that the Magnolia-1 exploration well has been drilled to a measured depth of 2,987 meters. The primary target Montara Formation and one of the two secondary targets have been intersected without encountering hydrocarbon shows. Progress since the last report is 1,607 meters.

Magnolia-1 is located in the offshore Timor Sea region, approximately 19 kilometers northeast of the Montara oil field and 28 kilometers southeast of the Skua oil field. Magnolia-1 has a planned total depth of 3,240 meters.

Participants in AC/P 32 are Coogee Resources as the operator of Magnolia-1 with 20%; AWE Timor Sea Pty Ltd ("AWE") with 10.0%; OPIC Australia Pty Ltd with 25.0%; Norwest Energy NL as permit operator with 19.6%; Adelphi Energy Limited with 15.0%; and Bounty Oil and Gas NL with 10.4%.