Australia: AWE Ltd. Announces Quarterly Report (September 2010)

Awe Limited , Australian based oil and gas exploration and production company,announces quarterly report highlights (September 2010):

> The workover of the Pateke-3H well in New Zealand was successfully concluded after the end of the quarter, with the well achieving better than expected initial production rates.

> The Adelphi takeover was successfully completed, 100% of the company now owned and operated by AWE.

> Initial reserves were defined for AWE/Adelphi’s Sugarloaf AMI in the USA. Net 2P reserves of 6.3 million BOE were reported, whilst the 3P reserves were over 18 million BOE. Drilling at Sugarloaf has accelerated, with two  rigs currently operating within the AMI.

> AWE’s board renewal process has continued, with the search for a new Managing Director being finalised, and a new Chairman in place at the end of the upcoming Annual General Meeting.

> Yemen drilling has continued, with extensive shows being reported at Jebel Al Milh-1. Appraisal drilling of the Al Meashar oil discovery commenced in early October.

> In Western Australia, further drilling success at Wolf-1 was reported, which has further extended the area of known gas in the Redback area. Gas sales via the Synergy gas sales agreement are expected to start in the December quarter.

> Gas production from the onshore Perth Basin increased 48%, as a result of the continuing flow at Corybas and the strength of the West Australian gas markets. The scheduled tie-in of the recent Redback gas discoveries should see this trend continue.

> September quarter production fell 6% to 1.56 million BOE, largely due to the Pateke workover activity.  AWE share of oil and gas revenue accordingly also fell to $63 million.

[mappress]

Source: AWE, October  29, 2010;