AWE declared on November 11, 2009 that it had entered into arrangements with CalEnergy Gas (Australia) Limited under which CalEnergy will sell a 15% equity interest in the BassGas Project (T/L1 and T/RL 1) to AWE. AWE also announced it had entered into arrangements that would result in Innamincka Petroleum Limited acquiring 7.5% of the CalEnergy equity.

Following the lapsing of the arrangement with Innamincka, AWE advises that:

AWE's arrangements with CalEnergy remain in place; and as foreshadowed in the November 11, 2009 announcement, AWE will now increase its equity in the BassGas project under the arrangements with CalEnergy by 15%.

The transaction will now result in AWE increasing its equity interest in the BassGas Project from 42.5% to 57.5%.

As previously advised, the purchase consideration will be adjusted on completion as necessary to reflect the effective date. The acquisition of this 15% equity interest will add to AWE's gas, condensate and LPG production and will also add approximately 10 million barrels of oil equivalent (BOE) to AWE's proved and probable reserves.

AWE Managing Director, Bruce Wood said, "AWE is extremely pleased to announce this increased equity in the BassGas project which will provide meaningful, sustainable long term cash flows to AWE shareholders."

Tags: Australia Worldwide Exploration (AWE)