AED (ASX) Ann: Spudding of Lempuyang-1 and Lukut-1 update

Originally posted by sailfish ↑

re: Ann: Spudding of Lempuyang-1 and Lukut-1 ...

G'day guys,
Just looking though old news announcements and came across this.

http://news.ninemsn.com.au/article.aspx?id=276173&rss=yes

If a subsidiary of China Petrochemical Corporation paid $600 million for a 60 per cent stake in AED Oil Ltd assets, including the Puffin and Talbot oil fields why don't they just buy them out now??? They could take them out get AED's 40% get there other assets cheap as chips, surely this (AED) should be trading from $1 upwards???

For me this has buy written all over it but the market is taking a shy look at it, not a lot of buying. This is (Lempuyang-1) a huge well, if they hit any of those big targets, AED should move up very nicely and never see these prices again! Oil is on the move to positive territory, I heard that oil could get up to $95 a barrel by Christmas this year.

Anyway here is an interesting artical, a from Fri Mar 7 2008.

AED to form joint venture with Sinopec

A subsidiary of China Petrochemical Corporation will acquire a 60 per cent stake in AED Oil Ltd assets, including the Puffin and Talbot oil fields, for $600 million as part of a joint venture with the Melbourne explorer.

Sinopec International Petroleum Exploration and Production Corporation will operate the joint venture, which is expected to be formalised within a fortnight.

The agreement covers three petroleum exploration permits in the Ashmore-Cartier area, which lies within the western Timor Sea.

The transaction is subject to approvals by the Chinese government, Northern Territory government and Foreign Investment Review Board.

AED said the transaction values the assets at about $1 billion.

AED will use the funds from the transaction to retire debt, settle its creditors and fund its joint venture interests and development opportunities.

Earlier this month, Norwegian firm AGR Group said AED was overdue in paying a $41.5 million bill.

"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," AED said.

AED chairman David Dix said the troubled oil producer had been seeking a partner with extensive experience and financial resources.

On Monday, AED said it had commenced negotiations with a "significant" company that had proposed to buy a majority interest in AED.

In January, AED said it had been "approached by a number of Australian and international parties" interested in participating in its portfolio of projects.

Friday's announcement follows a strategic review of AED, undertaken by Macquarie.

Production commenced at Puffin North-East on October 6.

AED's shares have slumped from about $11.73 in late October and last traded at $1.85.