AWE : G Sand appraisal well drilling update

Microsoft Word - 160530 AAL-4X drilling update ASX Announcement

30 May 2016

G Sand appraisal well drilling update

AWE Limited (ASX: AWE) advises that as at 09:00 hours (9.00am) AEST on 30 May 2016, the AAL- 4X appraisal well had reached Total Depth (TD) at 1246m Total Vertical Depth Sub Sea (TVDSS) and wireline logging operations are underway across the target K Sand and G Sand reservoirs.

The primary target G Sand reservoir was intersected on prognosis at 1176m TVDSS after encountering the secondary target K Sand at 1131m TVDSS. Both reservoirs have been fully cored for further analysis and oil shows have been observed in both sands. Following wireline logging, each reservoir is planned to be Drill Stem Tested.

The well is being drilled in water depth of approximately 72m using the Raniworo jack-up drilling rig and is forecast to take approximately 48 days in total to complete.

The Northwest Natuna PSC is located offshore Indonesia in the Natuna Sea and includes the Ande Ande Lumut (AAL) oil project. The AAL project comprises the K Sand reservoir (101 million barrels gross recoverable oil, net 24.3 million barrels of 2P Reserves and 1.7 million barrels 2C Contingent Resources to AWE) and the underlying G Sand reservoir.

The AAL-4X appraisal well's primary target is the G Sand reservoir, which is estimated to contain 289 million barrels gross oil in place with 36 million barrels gross recoverable oil (net 8.4 million barrels 2C Contingent Resources to AWE). Appraisal of the G Sand will facilitate the preparation of a Plan of Development for this resource, which could be developed in conjunction with the already approved K Sand development.

The Joint Venture partners in the Northwest Natuna PSC are:

AWE Limited (via subsidiaries) 50.00%

Santos Limited (Operator) 50.00%

Reserves and Resources

The reserves and resources in this announcement are based on and fairly represent information and supporting documentation prepared by and under the supervision of qualified petroleum reserves and resource evaluators: Dr. Suzanne Hunt, AWE Manager for Engineering and Development, and Mr. Andrew Furniss, AWE General Manager for Exploration and Geoscience. Dr. Hunt, a Petroleum Engineer with a Ph.D. in Geomechanics, is a member of the Society of Petroleum Engineer Engineers and has over 19 years' experience in the petroleum sector in field development planning, reserves estimation, production and facilities engineering. Mr. Furniss, a member of the Society of Petroleum Engineers and the American Association of Petroleum Geologists, holds an MSc in Exploration Geophysics and a BSc (Hons) in Geological Sciences and has over 25 years' of industry experience in strategic planning, portfolio management, prospect evaluation, technical due diligence and peer review, reserves and resource assessment, the application of advanced geophysical technology and business development. Both have consented in writing to the inclusion of this information in the format and context in which it appears.

AWE LIMITED LEVEL 16, 40 MOUNT STREET NORTH SYDNEY NSW 2060 AUSTRALIA

P +61 2 8912 8000 F +61 2 9460 0176 E awe@awexplore.com ABN 70 077 897 440 www.awexplore.com

About AWE Limited.

AWE Limited is an independent, Australian energy company focused on upstream oil and gas opportunities. Established in 1997 and listed on the Australian Securities Exchange (ASX: AWE), the company is based in Sydney with project offices in Perth and New Zealand. AWE has a substantial portfolio of production, development and exploration assets in Australia, New Zealand, and Indonesia.

For information please see our website www.awexplore.com or contact: Investor Relations Media Enquiries

Matthew Sullivan Ian Howarth

AWE Limited Collins St Media

02 8912 8022 03 9600 1979

Matthew.sullivan@awexplore.com ian@collinsstreetmedia.com.au

ENDS

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