AED to Commence Production on the Puffin-10
According to AED, the Wilcraft drilling rig will be mobilized on Saturday, October 6, 2007, in route to the Puffin SW region where the Puffin-10 production well is scheduled to be spudded. The jack up rig will operate in water depths of 84 meters 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 is expected to commence in the first half of 2008 and will be directed through the Modec Venture (MV1) FPSO.
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 utilized 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.