AED Secures FPSO for Puffin Oilfield
AED Oil Limited
|Wednesday, August 24, 2005
AED OIL Secures floating Production Storage and Offloading (FPSO) Vessel for Puffin Oil Field Development As foreshadowed in the 30 June 2005 Quarterly Report, AED Oil Limited (“AED Oil”) today announces the signing of a binding Heads of Agreement for the provision of a Floating Production Storage and Offloading facility (“FPSO”) for the development of Puffin Oil Field. Under the agreement between AED Oil and Vanguard Oil & Gas Developments Ltd. of London (“Vanguard”), Vanguard (in conjunction with Focus Oil & Gas Group BV) will supply the FPSO, on station and ready for the commencement of the production of oil from the Puffin Field during June 2006. The provision of the FPSO is a key component to the development if the Puffin Oil Field. The FPSO will have facilities to process up to approximately 40,000 barrels of oil per day and gas lift capability of 12 million standard cubic feet per day. In addition, it will have a storage capacity in excess of 740,000 barrels which AED Oil considers is adequate to enable marketable parcels (650,00 barrels) to be provided to the refinery market without the need for an additional floating storage. The FPSO will utilize an existing high quality trading tanker which is in excellent condition. It is considered an ideal technical solution to meet AED Oil’s needs and will be adapted to meet detailed specifications for production. Vanguard will commence the front end engineering work on the project immediately. Vanguard has a highly experienced management team with a track record of successful FPSO and FSO conversion projects, including the recently installed FPSO “Four Vanguard” operating on the Woolybutt field in Western Australia. Executive Chairman of AED Oil David Dix said “entering into Heads of Agreement represents an important step towards the completion of the procurement of key capital and operating items for the Puffin Field development. Securing a vessel available to meet the timetable and forecast operating cost budget outlined in AED Oil’s prospectus is a very satisfying conclusion to a lengthy selection and evaluation process.” AED Oil has now either procured or secured a large proportion of the key capital items and operating agreements required for the completion of the drilling and production program. In May 2005 AED Oil confirmed that it had secured the Stena Clyde drill rig to undertake the Company’s proposed drilling program on AC/P22. Under this program the Stena Clyde is scheduled to be on site and commence drilling in the fourth quarter of 2005. Managing Director Dr. Ken Tregonning stated “AED Oil’s production and plans are progressing well. Overall we are delighted with our progress and the increase in oil price to date has enhanced our project economics. Drilling of the Puffin 7 and Puffin 8 production wells and the Puffin 9 exploration well (formerly called the Fairfield Central Well) is expected to commence during November 2005”. AED Oil is continuing to work with its team of technical consultants including Upstream Petroleum, Peak Group and Shedden Uhde, to finalise its Field Development Plan together with reservoir simulation studies. AED Oil management expects that the Preliminary Field Development Plan will be ready for lodgement with the requisite authorities by the end of August 2005.