Business Description:
AWE Limited (AWE, formerly Australian Worldwide Exploration Limited) is engaged in exploration, development and production of oil, gas and condensate primarily in Australia and New Zealand. AWE concentrate on exploration and appraisal-type assets, in regions of proven prospectivity and where there is a high chance of commercial success.

Strategy Analysis:
AWE's focus is on oil and gas exploration and appraisal-type assets, in regions of proven prospectivity and where there is a high chance of commercial success. This focus includes currently marginal fields, whose worth may be improved by alternative and innovative appraisal and development approaches. Develop discoveries adjacent to installed infrastructure is a key component of value creation process. AWE reported a net loss of $117.56m for the year ended 30 June 2011. A net oil and gas asset impairment charge of $14.8m impacted the results for the year. This impairment is mainly in relation to the Cliff Head oil field and is primarily due to a reassessment of long term operating costs over the life of the field. Revenues from ordinary activities were $306.07m, down 14% from last year. Basic and Diluted EPS was (22.53) cents compared to (5.55) cents last year. Net operating cash flow was $139.85m compared to $86.71m last year. No dividend was declared. The company's balance sheet remains strong, with $117.0m of cash as at 30 June 2011. The company also has 2P Reserves of 66.1m BOE in a portfolio of production assets and retains a $150.0m corporate debt facility, which remains undrawn at the end of June 2011.