Oil producer AED Oil Ltd
(ASX:AED) has acquired a stake in the Brunei Block L oil and gas permit through the acquisition of a subsidiary of Brunei-based Nations Petroleum.
The subsidiary holds a 50% operating interest in the Brunei Block L oil and gas permit which covers approximately 2,200 square kilometres both onshore and offshore.
AED is to pay US$3 million in cash and issue 24 million shares, giving Nations a 14.5% interest in AED once the deal is complete.
Managing Director Pedro De Souza says AED is also evaluating Asian assets held by other Nations’ wholly owned subsidiaries.
Chairman David Dix says the company has been investigating opportunities in Brunei since September 2008 and plans to commence the scheduled two well drilling program on Block L within the first half of 2010.
AED Oil fell back into the red in 2009 after posting a profit in 2008, its only profit in five years.
