Puffin-10 Puffin SW – Drilling Program AED (AED or the Company) advises that the Wilcraft drilling rig will be mobilized on Saturday 6 October 2007. Puffin-10, a production well is located in the Puffin SW region and is scheduled to spud on Wednesday 10 October 2007. The jack up rig will operate in water depths of 84 meters. The primary objective of the well is to drill and complete a horizontal section 200 m+ of reservoir interval within the Upper Cretaceous (UK1a) sands. The well is expected take to approximately 55 days to drill and complete. Production from Puffin-10 will be directed through the Modec Venture (MV1) FPSO. Production from Puffin SW is expected to commence in the first half of 2008 To meet some of the initial cashflow requirements of the Puffin-10 drilling program, AED has placed 2,000,000 fully paid ordinary shares at an issue price of $7.70 raising $15.4 million. The funds will be utilised for ongoing developments works and working capital. The issue price represented a 5% discount to the prevailing AED share price ($8.26) at the time of negotiating the share placement. AED pays no fees for the placement. Puffin NE Installation and Production AED wishes to advise that testing and pre-commissioning works at Puffin NE is continuing. First oil production is expected within the next couple of days following full testing of the FPSO under operating conditions. Production from the field will commence by initially bringing Puffin-8 gradually up to production levels. Puffin-8 will then be shut in while the process is repeated for Puffin-7. Upon the satisfactory commissioning both Puffin-8 and puffin-7 will be opened to facilitate combined production. Production levels are expected to reach full operating levels within 2 weeks.
AED Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
