AWE to farm-out Terumbu PSC

Australia Worldwide Exploration (AWE) Ltd, owner of 42.5% participating interest in Bulu production sharing contract (PSC), will start exploration drilling at Liyun-1 well in March 2010. The well will target an Early Miocene reef complex with the potential to hold 75 million barrels of recoverable oil.

AWE said Lengo-2 well will also be drilled in the program to appraise the gas discovery made in early 2008. AWE told investors this morning that it has defined a number of sizeable follow up prospects in Bulu and in its 100% held adjacent Terumbu PSC, where its actively progressing plans to drill one or two exploration wells.

"AWE is considering farming out a portion of the Terumbu PSC," the company said in a quarterly report. The 3D seismic survey in the eastern portion of the Bulu PSC and in the newly acquired Terumbu PSC has been interpreted and numerous reef prospects have been mapped.

In East Muriah PSC, where AWE has 50% interest, a 1,200-Km 2D seismic survey acquired was processed and is being interpreted. 

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