Brunei Block L
Lempuyang -1 Exploration Well,
Weekly Drilling Report # 10
AED Oil Limited
(ASX:AED) is pleased to advise 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 metre 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 metres 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 programme needs to be undertaken across the "Blue sands" to confirm this early assessment, AED is optimistic about the potential for the well.
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 programme 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 Programme. 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.
Further updates will be made on a weekly basis unless additional disclosure is required.
Trevor Slater
Company Secretary
Media Contacts
Richard Little
Chief Financial Officer
T +613 9656 7800
