AWE announcement:AWE is pleased to advise it has entered into a...

AWE announcement:

AWE is pleased to advise it has entered into a farmin agreement to earn a 42.5% interest in the Bulu Production Sharing Contract area in the offshore East Java basin, Indonesia. AWE will contribute up to a maximum of US$12 million primarily towards the drilling of two offshore wells.

The Bulu PSC covers an area of approximately 3,495 square kilometres and is located approximately 40 kilometres off the northeast coast of East Java in the East Java Sea. The area has water depths of up to 60 metres. The East Java sedimentary basin is a significant oil and gas producing region and the
area surrounding the Bulu PSC contains a number of oil and gas accumulations, including the important Pangkah, Poleng and Kepodang fields. The drilling activity within the Bulu PSC area is expected to commence in the third quarter of 2007, with both the Lisah-1 and Lengo-1 wells to be drilled in the campaign.

Regards

SP