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AWE Provides Liyun-1 Drilling Update in Indonesia

Source: www.gulfoilandgas.com 7/8/2010, Location: Asia

AWE Limited advises that during the week 7" casing was set in Liyun-1 to a depth of 1656.5 metres. At 0600 hours today the operator was preparing to drill ahead. It is anticipated that the target reservoir in Kujung-1 formation should be intersected in the coming week.

Liyun-1 is an exploration well in the Bulu Production Sharing Contract, which is located in the East Java Basin, offshore Indonesia.

The Liyun-1 well has a planned total depth of approximately 2,570 metres.

The well is being drilled approximately 35 kilometres offshore in a water depth of approximately 55 metres. Liyun-1 is targeting the oil potential of the Kujung I reef carbonates, currently producing in acreage to the east of the Bulu Production Sharing Contract.

The participants in the Bulu Production Sharing Contract are: AWE Limited 42.5%, Pearl Oil (Satria) Ltd (Operator) 42.5%, PT Satria Energindo 10.0% and PT Satria Wijaya Kusuma 5.0%.

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