Front Puffin FPSO Connected to Mooring Riser System

AED Oil Ltd has taken a major step towards achieving First Oil production from its 100 percent-owned Puffin North East oil field in the Timor Sea. The Floating Production, Storage and Offloading (FPSO) vessel Front Puffin has successfully connected to the mooring-riser system in preparation for commencing production. The mooring-riser system holds the FPSO on location, as well as connecting the subsea system to the vessel.

Installation of the subsea systems is now complete. Hydro testing of the subsea system and the controls is presently underway. Initial testing results has identified that a seal and a connector require replacement. The diving vessel is presently on route to Darwin to change over the diving crew and to restock supplies. Upon its return to the field the remedial work is expected to take approximately one week. Accordingly AED is on track for First Oil around the end of this month.

Further to the ASX Release on 6 September 2007 David Dix (Executive Chairman) and related entities has exercised 18,163,192 options in AED and Ken Tregonning (Managing Director) and related entities has exercised 13,703,290 options in the Company.