150223 AWE HYR Impairment
ASX Announcement
23 February 2015
AWE expects to recognise non-cash impairments of $50 million after tax
AWE Limited (ASX: AWE) advises that it expects to report non-cash impairment charges of approximately $50.1 million after tax ($92.6 million before tax) in its upcoming Half Year Results to be released on 25 February 2015.
The impairment charges reflect the impact of lower oil prices on the carrying values for oil producing assets resulting in a non-cash accounting adjustment to the book values of the Cliff Head and Tui assets. These impairments are subject to final board approval of the company's half yearly accounts.
The table below summarises the non-cash impairment charges. These impairments will not affect
AWE's strategy, operating outlook or its ability to fund future activities.
Oil producing asset Non-cash impairment before tax
Non-cash impairment after tax
Cliff Head Oil Project $25.2 million $10.6 million
Tui Area Oil Project $67.4 million $39.5 million
TOTAL $92.6 million $50.1 million
Note: The level of non-cash impairments was determined after a review of asset carrying values in the current lower oil price environment. AWE has used Brent oil price estimates of $59/bbl in 2015,
$65/bbl in 2016, $82/bbl in 2017 and $96/bbl in 2018, and an independent long term oil price
forecast thereafter. Exchange rates of AUD/USD 0.81 was applied in 2015, and AUD/USD 0.80 thereafter.
For information please see our website www.awexplore.com or contact:
Investor Relations Media Enquiries
Matthew Sullivan Ian Howarth
AWE Limited Collins St Media
02 8912 8022 03 9600 1979
[email protected][email protected]
ENDS
AW E LIMITED LEVEL 16, 40 MOUNT STREET NORTH SYDNEY NSW 2060 AUSTRALIA P +61 2 8912 8000 F +61 2 9460 0176 E [email protected] ABN 70 077 897 440 www.awexplore.com