testing recommenced, page-6

AWE's mention of arrowsmith-2 well in their annual report...

"The Arrowsmith-2 well (AWE 44.25%) tested five separate shale and tight gas zones with hydrocarbon flows being
achieved from all five zones. Plugs were set between
each zone in order to collect separate test data from each
individual zone. A stabilised gas rate of 0.78 MMscf/d was
obtained from the High Cliff Sandstone, while gas was
also recovered from the Irwin River Coal Measures and
Carynginia Formation. Both oil and gas were recovered
from the Kockatea shale, which substantially enhances the
commercial potential of the Kockatea.

Testing of the Arrowsmith-2 well recommenced in late
October following hook-up and commissioning of
production testing equipment. This testing will include
clean-up and flow testing of each of the five zones, starting with the Kockatea shale. The EP 413 Joint Venture is currently evaluating the potential acquisition of a 3D seismic survey in the Arrowsmith area during 2013.

AWE holds an extensive acreage position in the Onshore
Perth Basin. Following the initial success from the recent
testing program, particularly the flow rates achieved
from the High Cliff and Dongara / Wagina tight sands, the
Company is taking a fresh look at data accumulated over
the last 20-30 years in the basin, as past drilling programs
have included wells that intersected many tight oil and gas
reservoirs. Evaluation of this data may identify new appraisal opportunities in the basin.

AWE is also continuing to pursue new oil and gas
exploration opportunities in the north Perth Basin, with
processing and initial interpretation of the Redback-Irwin 3D seismic survey being undertaken."

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