AWE Completes Refinancing

Australian Worldwide Exploration has completed a refinancing package to simplify its debt structure and provide added flexibility to fund the future growth of the business.

The existing project finance facilities (relating to the BassGas gas/condensate and the Casino gas projects) will be paid out and replaced by a single A$120 million corporate banking facility. In addition, a US$42.5 million letter of credit (relating to the Tui Area Development) and a new working capital facility of up to A$15 million have been added to improve access to cash and increase flexibility for funding future projects.

The new facility will remove the current security structure on AWE's cornerstone assets and release the high levels of restricted cash controlled by AWE's bankers. The refinancing will also result in lower interest margins for the company.

The new corporate facility has been provided to AWE by ANZ and BOS International.

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

"This refinancing reduces AWE's costs, significantly improves the cash available to the company, and provides greater flexibility on how AWE can fund future acquisitions.

"AWE's balance sheet remains strong, and with the long term cash flows now coming from our diversified asset base, the future looks bright for AWE's shareholders."