"AWE is pushing ahead with plans to drill its 20 per cent held, 700 million barrel (mmbbls)-plus Tui project (offshore Taranaki Basin, New Zealand) early in 2003," Carmichael said in its weekly report.

"We speculate that a significant partner has been approached and terms are now being finalised for drilling the $18 million well.

"A 200 mmbbl discovery at Tui would add over $2 per share and potentially up to $5 per share for AWE if it holds over 700 mmbbls."

Currently, AWE is trading at 70 cents a share.