AED Intersects Possible Reservoirs at Lukut-1 Well

AED announced that drilling operations at the Lukut-1 well have intersected possible reservoirs. The Lukut-1 well recently reached its extended Target Depth of 2230m MDRT. An extensive logging program will be initiated today including wire line logging and sampling to evaluate the well, and determine extent and nature of the hydrocarbons.

The Lukut Prospect is defined as a three-way fault structural trap, with the Lukut-1 well targeting shallow water delta front sands in the Belait Formation. Pending the outcomes of logging, the Lukut-1 well could be suspended. Another rig may be commissioned and moved onsite for well testing, prior to the completion of the Lempanyang-1 exploration well scheduled for drilling in June 2010.

The Lukut-1 well was spudded on May 2, 2010 and is currently within budget and cost estimates. The schedule for completion may vary depending on the outcome of the wire line logging and subsequent flow testing.

The intent of the Lukut-1 well was to test geological structures and was located with reasonable prospects of intersecting hydrocarbons. AED is very encouraged by the preliminary results of the Lukut-1 well and its initial assessments of satisfying these objectives. Further details following logging and testing will be release in coming days.

The drilling of the Lukut-1 well is part of the initial commitment to an exploration strategy in Brunei.

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