AED Briefs Initial Testing Results of Brunei Well

Brunei - Block L
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AED, as operator of Block L, Brunei, updated the initial results of testing at the Lempuyang-1 well in Brunei, Block L.

Drilling of the Lempuyang-1 well intersected two main zones of interest with an aggregate gross thickness of 56.4m. AED commenced testing the lower of these zones with an aggregate gross thickness of 22 meters and will then proceed to test the upper blue zone.

The test results to date in the lower zone which indicate high volumes of water being produced are potentially influenced by poor isolation of a higher pressure zone (potentially water) below the test intervals. Forward operations will attempt to determine the source of water production and its potential to mask hydrocarbon in the tested zones. Analysis of the test results is ongoing and it is intended to run a Production Logging Tool (PLT) to assist in determining potential spurious water inflow.

Preliminary data from testing has now been incorporated into the interpretation of the remaining intervals of interest for the well. Following the PLT it is now planned to move to the upper Blue zone and undertake flow testing. As previously reported during drilling a high pressure interval was intersected in the blue zone. This testing of the upper zone should be completed by early next week.

These initial results are preliminary only. Further testing at Lempuyang-1 and Lukut-1 is required before a more informed assessment can be made as to the potential commercial viability of these wells. Preparations for testing the upper zone and Lukut-1 exploration well are substantially complete. The Company remains positive about the outcome of these tests.

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