Indonesia: AWE’s Liyun-1 Drilling Update

AWE Limited reports that at 0600 hours today (Indonesian time) the Liyun-1 well is at a measured depth of 1,162 metres and is currently testing underbalanced drilling equipment prior to running in hole and drilling ahead. Progress for the week was 671 metres.

Liyun-1 is an exploration well in the Bulu Production Sharing Contract, which is located in the East Java Basin, offshore Indonesia.

The Liyun-1 well has a planned total depth of approximately 2,570 metres.

The well is being drilled approximately 35 kilometres offshore in a water depth of approximately 55 metres. Liyun-1 is targeting the oil potential of the Kujung I reef carbonates, currently producing in acreage to the east of the Bulu Production Sharing Contract.

The participants in the Bulu Production Sharing Contract are:

AWE Limited 42.5%

Pearl Oil (Satria) Ltd (Operator) 42.5%

PT Satria Energindo 10.0%

PT Satria Wijaya Kusuma 5.0%

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Source: Awexplore , July 1, 2010