AWE has acquired a further 5% interest in exploration permit T18/P in the offshore Bass basin from CalEnergy Gas Australia Limited increasing its equity in the block from 42.5% to 47.5%.

The purchase, at a net cost of approximately $9 million (including drilling costs), will be funded from existing cash reserves. The deal remains subject to the completion of joint venture and governmental approvals. There are no pre-emptive rights on the transaction.

The T18/P permit remains prospective for condensate-rich gas discoveries, with 2 wells planned for drilling in the near term. The Trefoil-1 discovery, in late 2004, produced a significant gas and condensate discovery which flowed on test at rates as high as 16.3 million cubic feet of gas per day, with associated condensate.

The Kan Tan IV offshore drilling rig is currently being upgraded in Port Phillip Bay and is expected to be mobilised to the Bass Basin in late July for the drilling of these high-profile wells. The initial Bass Basin campaign will entail the drilling of the Trefoil-2 appraisal well and the Rockhopper-1 exploration well in T18/P.

Following this transaction, participants in T18/P will be:

AWE 47.5% Origin Energy Resources Limited (Operator) 39.0% CalEnergy Gas (Aust) Limited 8.5% Innaminka Petroleum Limited 5.0%

Tags: Australia Worldwide Exploration (AWE)