AED Drills Ahead at Brunei Lempuyang Well

AED advised that drilling of the Lempuyang-1 well continues in 6" hole and is presently at a depth of 2969m MDRT. The progress of the well has been slowed to accommodate the gas kick previously reported from a 3-5 meter sand where the total gas
reached 35%. The resultant pressure increase necessitated running the 7" casing earlier than expected to ensure well safety.

The gas kick encountered at 2865 mMD occurred within the second well target (“Blue sands”) in Lempuyang-1. The 'Blue sands' also contained numerous elevated gas levels and cuttings shows suggestive of rich gas, light oil or condensate. AED has been very
pleased that the first two interpreted stacked reservoir targets in Lempuyang-1 have come in close to prognoses (+17 and +9 meters respectively) and with reservoir sands. The sequence of sands are typical of Brunei oil and gas fields. For example the nearby billion
barrel Seria Field, has numerous wells with water filled reservoirs overlying hydrocarbon bearing zones. While the wireline logging program needs to be undertaken across the “Blue sands” to confirm this early assessment, AED is optimistic about the potential for the

The immediate plan is to drill ahead cautiously to reach the two additional well targets; the 'Pink horizon' at 3030 and the 'Green horizon' at 3160 mMD. Once the well is completed and the logs assessed we will consider the best way to further evaluate the well. It is likely that any test program will also incorporate the testing of the Lukut-1 well.

The Lukut-1 well was the first well drilled in Block L as part of the Phase One Exploration Program. The well reached a TD of 2366 mMD and petrophysical analysis defined ten zones of interest for further assessment. The well has been suspended in preparation for testing.

The two exploration wells so far drilled by AED in Block L have shown numerous gas and oil shows along with gas kicks, even in the shallow sections, and these highlight the hydrocarbon potential of Brunei. AED is excited to be progressing into the Phase 2 exploration in Block L.