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Australian Worldwide Exploration Limited (AWE) and CalEnergy Gas (Australia) Ltd have entered into arrangements under which CalEnergy will sell its 15% equity interest in the BassGas Project (T/L1 and T/RL 1) for a total consideration of A$80m. Separately, AWE and Innamincka Petroleum Limited have entered into arrangements that will result in Innamincka acquiring 7.5% of the CalEnergy equity. The CalEnergy and Innamincka arrangements mean that AWE’s share of the project will increase by 7.5%, from 42.5% to 50%. The purchase of additional equity in BassGas is consistent with AWE’s growth aims. The transaction will not complete until after February 28, 2010 but the effective date of the acquisition will be July 1, 2009. The purchase consideration will be adjusted as necessary to reflect the effective date. The transaction will add to gas and condensate production and will also add approximately 5.2 million barrels of oil equivalent proved and probable reserves to AWE.

AWE managing director, Bruce Wood, said, “BassGas is a cornerstone asset for AWE. It has both existing infrastructure nearby to Melbourne and ready access to some exciting exploration opportunities. The adjacent T/18 P joint venture is currently drilling the Trefoil-2 well, to confirm additional gas reserves for the project. The Lang Lang gas plant will become a focal point for added gas reserves in the Bass Basin. AWE will continue to seek value-accretive opportunities in and around our existing cornerstone assets.”

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