Earlier in the year Australian Worldwide Exploration Limited ("AWE") announced it had completed the acquisition of all the shares in New Zealand Overseas Petroleum Limited ("NZOP"), and thereby assumed Operatorship of the Tui Area Oil Project. The Tui project is located within PMP 38158, in the offshore Taranaki Basin, New Zealand.

Since the purchase of NZOP, the AWE Group has completed a smooth transition to takeover management of the project and has completed a detailed review of the development.

The AWE Group is pleased to advise that results of the project review have concluded that an optimised development plan could increase the proved and probable recoverable oil reserves which can be accessed from the project. Subject to regulatory approvals, this will be undertaken by reconfiguring the oilfield development to include 2 wells on the Tui field (with a provision for a third well if development drilling and production data supports higher recoveries) and a single well on each of the Amokura and Pateke accumulations.

AWE estimates this new well configuration will provide access to a further 1.1 million barrels of recoverable oil. Total proven and probable field reserves are now estimated by the Operator at 27.9 million barrels.

As part of the review process, AWE also investigated the implications of the revised development on capital expenditure and the date for first oil production. Whilst the revised development plan does not necessarily adversely impact the previously announced capital costs of US$204 million, AWE as Operator has advised the joint venture it is prudent to add an approximate US$21 million contingency to the approved project capex (ie a revised total capex of US$225 million) to allow for unforeseen future drilling problems or schedule delays associated with adverse weather conditions during the installation of the facilities.

The revised plan does not alter the timetable for first oil deliveries from the project, which are still expected by the end of Q2, 2007.

In addition to the development drilling, the joint venture will drill two exploration wells, Tieke-1 and Taranui-1, within PMP 38158. A drilling rig has been secured for these wells, which are currently scheduled for drilling in Q2, 2007.

Commenting on the results of the review, AWE’s managing director Mr. Bruce Phillips said: "The Tui project is an important project for AWE, being its first significant offshore development project as an Operator.

"In this context, we are pleased that the Tui oil project remains on schedule despite the recent change in ownership and Operatorship. The challenges of integrating a project management team with people based in the USA, Singapore, New Zealand and Australia should not be under-estimated and we are pleased this has been achieved in a seamless manner.

"In completing the review of the Tui development, AWE has attempted to achieve the best commercial outcome for its shareholders, within prudent financial contingencies. We are pleased that these initiatives have been supported by our alliance partner, Mitsui.

"On the exploration front, we are delighted to have secured a drilling rig in the current difficult market. Starting in Q3, 2006 AWE is embarking in the largest offshore exploration drilling campaign ever undertaken in New Zealand. The Tieke-1 and Taranui-1 wildcats in PMP 38158 are a meaningful part of this campaign, with the potential to more than double the Tui area oil reserves in the success case."