AED Oil Limited
ACN 110 393 292
PO Box 18199
COLLINS STREET EAST VIC 8003
AUSTRALIA
ASX Announcement
3 April 2007
AC/L6
Puffin-8 Strikes Oil
Drilling Progress Report No 6
Puffin-8 has penetrated the first of three mapped highs (refer to figure below), encountering the top of the oil bearing LK1a reservoir at 2022.8 metres True Vertical Depth (TVD), approximately one metre higher than at Puffin-7. The well has subsequently drilled on a nearly horizontal trajectory, 9 degrees from vertical, covering an oil bearing interval of more than 73 metres to date, measured along the well. An initial penetration was made as a “pilot hole”, which was used to better delineate the mapped structure. Accordingly, the present well trajectory will be referred to as Puffin-8 ST1.
Upon completing the drilling of the first high, the planned well track is expected to encounter a small mapped low, similar to Puffin-7, before penetrating the second of three mapped highs, with additional mapped oil bearing formation. The third high targeted is north of the oil bearing Puffin-1 well.
Puffin North East Depth Map, April 2007
Puffin-8 Intersects More Than 200 Metres
of Oil Bearing Formation
Drilling Progress Report No 7
The Puffin-8 ST1 well has delineated three mapped highs, intersecting 232 metres of net oil bearing sand (with tops revised after running gyro measurement). Most of the well was drilled as a horizontal trajectory, with vertical depth control to maximize potential producing intervals.
The latter part of the well was used to appraise the oil bearing structure and the regional Oil Water Contact (OWC) which was confirmed as 2034.1 metres after penetrating the contact. A number of pressure measurements were made to confirm the regional continuity of oil bearing sands.
Overall, drilling conditions encountered have been more difficult than expected. Accordingly the Company has decided to complete the well as the second oil producer at this point in time, rather than continuing with additional appraisal drilling.
The geological results from the well will need to be integrated with earlier mapping to produce an updated model of the Puffin NE1 area and to enable the calculation of oil volumes.
The Puffin-8 well will now be completed and flow tested prior to connection to the subsea manifold as part of the Phase 1A installation process for the Puffin Oil Field.
Puffin-8 is the second development well targeting the main Puffin North East structure (NE1). The subsea location of the well is 310m south of Puffin-7. The well is again planned as a horizontal well, reaching the reservoir (LK1a sand) at approximately 2045m TVD RT (True Vertical Depth from Rotary Table). The horizontal section would be a minimum of approximately 250m. The well is expected to reach a minimum measured depth of at least 2920m RT, with a maximum of around 3800m RT. After completing the well, a short flow test will follow to ensure well integrity. The total time for drilling and completion of the well is estimated to be 42 days, assuming no downtime for weather or other reasons, with an estimated completion date of 29 March.
http://imagesignal.comsec.com.au/asxdata/20070219/pdf/00694463.pdf
What they did not like is the mention of WATER
cheers laurie
Hate to be negative, but i'm not a fan of this share anymore. that $5 resistance level has halted any positive rise in price and maybe the market has factored in all this and $5 is the new high's. Has anyone got any ideas of how this share will perform over the next few months/yrs.
The risk the market is factoring into the sp is that AED has only a single project one large cyclone can cause AED untold damage so there is nothing to fall back onto IMHO they need other projects or JV to spread the risk factor over several fileds in different locations
cheers laurie
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