AWE Ltd reports that the Tieke-1 well commenced drilling at 0230 hours (NZ; time) on November 22; 2006. At 0600 hours today the well was preparing to run and; cement 30” conductor casing at a measured depth of 229 metres.

Tieke-1 is located in PMP 38158; 40 km off the west coast of New Zealand’s North Island; and approximately 8 km from the Tui oil field.

The well will be drilled to a; planned total depth of 3; 600 metres; in a water depth of 122 metres and is expected to; take 18 days on a ‘trouble free’ basis.; Following completion of operations at Tieke-1; the offshore drilling rig will commence the; development drilling activities on the adjacent Tui Area Development.;

Participants in Tieke-1 and PMP 38158 are:; AWE * 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%);