Tui-amokura-Pateke fields are commercial

Australian Worldwide Exploration Ld., on behalf of its wholly owned subsidiary AWE New Zealand Pty Ltd., is pleased to advise that the PEP 38460 joint venture has determined that the Tui-Amokura-Pateke oil fields, in New Zealand's offshore Taranaki basin are commercially viable.

Australian Worldwide Exploration Ld., on behalf of its wholly owned subsidiary AWE New Zealand Pty Ltd., is pleased to advise that the PEP 38460 joint venture has determined that the Tui-Amokura-Pateke oil fields, in New Zealand's offshore Taranaki basin, are commercially viable.

The declaration was made by the joint venture based on a proved and probable reserve base in the range of 20-30 MMbbl of recoverable oil and a development concept consisting of three or four subsea wells tied back to an FPSO.

Capital costs for the subsea and subsurface components of the development are expected to be in the range of $120-150 million. If an FPSO were to be purchased rather than leased, additional capital expenditure would be required.

The joint venture has approved a budget to fund the start of front-end engineering and design work, which will allow the final financial commitment to the project to be made in June 2005. Assuming the timely receipt of regulatory approvals, first oil is planned for 3Q-4Q 2006.

"This is an important initial step in the process of commercialising our oil discoveries in New Zealand. Whilst the development concept for the fields is straightforward, it should be stressed that a final investment decision will not be made until we have completed the requisite engineering studies and secured a suitable FPSO or similar production facility. This work is now underway, moving towards a target date for project sanction in mid-2005," commented Bruce Phillips, AWE's managing director.

Participants in PEP 38460 are New Zealand Overseas Petroleum Ltd. (operator) with 45%, AWE New Zealand Pty Ltd. 20%, Mitsui E&P New Zealand Ltd. 12.5%, Stewart Petroleum Co. Ltd. 12.5%, WM Petroleum Ltd. 10%.

10/29/04


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