AED Reaches Final Stages of Commissioning the Puffin NE Field

AED is reaching the final stages of commissioning the Puffin North East field. Outstanding works include corrections to the flow metering; water handling systems and gas lift systems. These works are expected to be completed within the next one to two weeks.

Initial production during the commissioning period to date has been approximately 300,000 stb. Crude oil offtake of 330,000 stb is on target for 27 October 2007. During the commissioning period produced water has averaged approximately 12%. Initial analysis on the water cut suggests that this may be partially due to sand mobilization. It should be noted that sand screens have been installed in order to protect the integrity of well infrastructure. There has been no evidence of sand in the production stream. As water handling and gaslift facilities have not been fully commissioned, oil production levels will remain lower than initially forecast while works are being completed. The introduction of gas lift, which will occur post commissioning, is intended to maximize total fluids production and optimize oil production. Preliminary assessments suggest that the ongoing production rates are likely to be approximately 20,000 to 25,000 bopd.