AWE Ltd (“AWE”) reports that at 0600 hours today, the Taranui-1 well was cementing 30” casing at a depth of 227 metres, after starting drilling operations at 0630 hours on August 20, 2007.

During the week, the Hector-1 was plugged and abandoned and the Ocean Patriot rig was moved to the Taranui-1 location in PMP 38158.

The Taranui prospect is located in PMP 38158, approximately 15 kilometres north east of the Tui Area Oil Project. Taranui -1 is being drilled in a water depth of 121 metres and has the potential to contain in excess of 15 million barrels of recoverable oil. The well has a planned total depth of approximately 3,900 metres.

Participants in PMP 38158 are: AWE * (Operator) 42.5% Mitsui E & P New Zealand Limited 35.0% Stewart Petroleum Company Ltd (“New Zealand Oil & Gas”) 12.5% WM Petroleum Ltd (“Pan Pacific Petroleum NL”) 10.0% * New Zealand Overseas Petroleum Pty Ltd (22.5%) AWE New Zealand Pty Limited (20.0%)