Senecio-3 Flow Test Update

AWE Limited as the Operator of the L1/L2 joint venture, provides the following update on the flow testing program at the Senecio-3 well, in the onshore Perth Basin, Western Australia.

The testing program is designed to determine well deliverability from two reservoir zones in the Waitsia gas discovery and to collect gas samples for compositional analysis.

The first stage of the testing program commenced on 18 February and focused on the lesser quality, deeper secondary target, the High Cliff Sandstone. A 5 metre interval (3,254m – 3,259m) was perforated without stimulation and the well was flowed twice over a 77 hour period.

Following clean-up of the well, a stabilised gas flow rate of 0.3 million standard cubic feet per day (mmscf/d) was measured during the flow test period. The gas composition was predominantly methane with only minor levels of carbon dioxide present (CO2 circa 2%, which is within gas pipeline specification). The result is consistent with pre-test expectations for the High Cliff Sandstone and confirms its potential as a significant gas resource.

Following a shut-in period to monitor pressure build up, a plug will be set to isolate this deeper interval prior to commencing the second stage of the testing program. This will involve extended testing of the primary target, a 10 metre interval (3,173m - 3,183m) in the upper Kingia Sandstone.

The testing program is expected to be completed by mid-April. AWE estimates that the Kingia and High Cliff Sandstone intervals in the Waitsia gas field have gross Contingent Resources in the range from 65 billion cubic feet (Bcf) to 1,170 Bcf, with a best estimate (2C) of 290 Bcf. The Dongara/Wagina formation is estimated to contain an additional
70 Bcf gross 2C Contingent Resource.

Further appraisal of the Waitsia field is planned in late May with the drilling of the Waitsia-1 well, 3km to the east of Senecio-3 in L1/L2. This well will follow the planned Irwin-1 exploration well in EP320 (operated by AWE under an agency agreement with joint venture partner, Origin Energy (OGFGF.PK)) that is scheduled to spud in late March. Irwin-1 will target multiple reservoir objectives including the Kingia and High Cliff Sandstones approximately 6km east of the Senecio-Waitsia Fields.