AED Oil is pleased to announce that Sinopec International...

AED Oil is pleased to announce that Sinopec International Petroleum Exploration and
Production Corporation (“SIPC”), a wholly owned subsidiary of China Petrochemical
Corporation (“Sinopec”) and AED propose to enter into and consummate a transaction
in respect of the acquisition by SIPC of a 60% joint venture interest in the assets held
under AC/P22, AC/L6 and AC/RL1 (which include the Puffin and Talbot fields) (the
“Assets”).
It is the intention of the parties to seek to finalise and execute documentation as
soon as practicable, which is expected to be within two weeks.
Key highlights of the transaction will include:
�� The joint venture proportions will be 60% SIPC, 40% AED.
�� SIPC will be the operator of the joint venture.
�� The transaction values the Assets at approximately A$1 billion.
�� The effective date, for economic purposes, of commencement of the Joint
Venture will be 31 March 2008.
�� The transaction is subject to third party consents including Government of the
People’s Republic of China, FIRB and NT Government. SIPC has already lodged its
application for FIRB approval.
The parties also have a mutual desire to expand their respective interests in the
energy market and plan to work together in a broader association to seek other
project opportunities in the region.
AED will utilise the funds received from the transaction to retire debt, settle its
creditors and fund its joint venture interest and development opportunities.
AED’s Board believes this transaction to be in the best interests of its shareholders
with a view to maximising future value from its Assets.
Mr Dix, Chairman of AED, stated that he is delighted to have the opportunity to work
with SIPC in the development of the Assets. Having a partner with the extensive
experience and financial resources of SIPC will achieve the strategic objectives of AED
in seeking a partner outlined in our earlier announcements.