AWE Limited, via subsidiaries, reports that the hydraulic stimulation program in the Perth Basin commenced on 29 July 2012.

The Operator of the EP413 Joint Venture, Norwest Energy NL, advises that the first hydraulic stimulation in the Arrowsmith-2 well was successfully completed on 29 July and flow back from the well commenced on 30 July. The target for the stimulation was the tight High Cliff sandstone formation between 3,255 metres and 3,295 metres.

Initial flow back from the well included both injection water and small amounts of gas, with water rates declining during the day. At this early stage, it is has not been possible to measure the gas flow rate. It is anticipated that flow back and clean-up from the well will continue for approximately a week, at which time testing of the gas flow rate is planned.

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