AED Recommences Retesting Preps at Lempuyang Well

AED Recommences Retesting Preps at Lempuyang Well

Friday, April 01, 2011

AED Oil Ltd.

AED Oil updated on its current testing program at Brunei Block L and its forward plans for the Block. 

Testing Update – Lempuyang-1

During the last few days, AED recommenced work in preparation for retesting of the Lempuyang-1 well. During this process, we have continued to experience mechanical and equipment issues with the well and have shut in the well. We will continue to assess the situation and will update the market once further information is available.

Lempuyang Testing Analysis

While the test results have not allowed a complete assessment of the Lempuyang-1 well thus far, AED is still encouraged by the results to date, including:

• identification of mobile gas in the two target intervals;
• gas produced to surface; and
• interpretation of a drainage area consistent with geological mapping supporting the trap integrity and structural interpretation of the Lempuyang prospect. 

Phase-2 Exploration update 

AED remains optimistic that the southern area remains a significant exploration objective. A recent evaluation of the Vertical Seismic Profile (VSP) data from the Lempuyang-1 well has shown that two potential reservoir horizons below the Total Depth of the well have not been intersected and remain untested. The recently acquired aerial gravity and magnetic survey over Block L highlights potential updip prospectivity east of our current 3D seismic.

We intend to focus on acquiring seismic over the Jerudong Field with the potential for oil development.


Phase 2 Work Program, 2011

In addition to the current testing program, AED currently anticipates that the following exploration activity will occur at Block L in the near term:

• Seismic acquisition at West Jerudong. AED plans to capitalize on the current high oil prices by shooting 130km2 3D seismic over the Jerudong oil field. This field was previously produced and shut-in without being fully depleted. The area has only limited 2D seismic coverage and AED intends to acquire 3D seismic to delineate additional potential oil pools.
• A 3D seismic patch (13km2) and 2D seismic line (13km) east of the Lempuyang-1 well will be acquired to confirm structural rollover, as a precursor to a contingent extension to the 3D seismic program of up to 150km2.

The Block L Joint Venture is made up of AED SEA (50% operating interest), Kulczyk Oil Ventures (40%) and QAF Brunei (10%).