AWE has entered an agreement to earn a 23.33% interest in Block 06/94 in the Nam Con Son Basin in offshore Vietnam.

Under the terms of the agreement, AWE will earn a 23.33% interest from Serica Energy Corporation, a wholly owned subsidiary of the AIM and Canadian listed company Serica Energy plc. The agreement is subject to the waiver of a pre-emptive right held by PetroVietnam, the Vietnamese State oil and gas company, and to the approval of the government of Vietnam.

The 06/94 block is located in the prospective Nam Con Son Basin, approximately 400 kilometers from the coastline and adjacent to the BP gas production facilities at Lan Tay and Lan Do, as well as the recent oil discovery by Premier Oil.

Under the farm-in agreement, AWE will fund the upcoming drilling activity in the block on behalf of Serica. The block is largely covered by extensive 3D seismic data, used to define the Tuong Vi prospect, which is expected to be drilled in June 2009. The well will target the oil potential of the Dua Formation sandstones and the Nam Con Son Carbonate.

The Ocean General drilling rig is expected to arrive on location in Block 06/94 for the Tuong Vi exploration well in June 2009. The second and third exploration wells on the block are not expected to be drilled until 2010.

On completion of the agreement, the participants in 06/94 will be:

AWE 23.33% PearlOil (Taconite) Limited (Operator) 33.34% Lundin New Venture B.V. 33.33% Serica Energy Corporation 10.00%

Tags: Australia Worldwide Exploration (AWE)