AWE Plans to Hire Adviser to Sell Stake in Indonesia Oil Venture

AWE Ltd., the Australian explorer planning a $600 million oil project off Indonesia, expects to appoint a financial adviser within two weeks to help sell as much as half of the development to a partner.

The company plans to complete the process to find an investor for the Ande Ande Lumut venture by mid-year and to decide in the third quarter whether to go ahead with the project, Bruce Clement, managing director of Sydney-based AWE, said today in a phone interview. Clement declined to name the financial adviser AWE is planning to hire.

AWE is developing shale gas prospects in the Perth Basin of Western Australia and planning to expand in Asia and New Zealand. The company last year acquired from Malaysia’s Genting Bhd. two Indonesian oil blocks, including Ande Ande Lumut, which had an estimated 76 million barrels of recoverable oil.

“This is a substantial oilfield development,” Clement said. “There aren’t many 70 or 80 million barrel fields being developed in this part of the world, and this is a significant opportunity to be a partner and participate.”

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