AED Oil Limited (ASX:AED) today released its results for the year ending 30 June 2010.
It has been a successful year for AED Oil Limited, as we progress toward our goal of becoming a leading regional oil and gas company with a diversified asset portfolio of exploration and producing fields in domestic and international territories.
AED's strategy is to identify, explore, develop and commercialise high-impact oil and gas opportunities in the Asia Pacific region. Implementation of our strategy commenced by diversifying our asset base from the Puffin and Talbot Fields by investment into South East Asia.
Fitting with the strategy, we have been pleased with the advancement of our initial two well Phase 1 Exploration Program for Block L, Brunei and the planning for opportunities in Rombebai and South Madura. During the financial year AED has continued to build, strengthen and increase the value of your company with the successful implementation of the above corporate strategies through:
• Diversification – the diversification of its interests through investments in the Asia Pacific region with the acquisition of highly promising assets – 50% interest in Brunei (Block L), 100% interest in Rombebai Contract Area, and the 60% interest in South Madura Contract Area.
• Capital management – the Statement of Financial Position has been strengthened with the restructuring of the existing convertible notes and by successfully obtaining two new financing facilities.
• Puffin Field – the suspension of operations on Puffin and undertaking a detailed geophysical and geological analysis on the Puffin Field with the view to establishing a new Field Development Plan for the Puffin and Talbot fields.
Financial Overview
The net loss after tax for the financial year of $12.0 million (2009: loss of $103.6 million) and the improvement in the balance sheet position is reflected by the following items occurring during the financial year:
• There were minimal operating costs this year due to the cessation of production on the Puffin Field. The Company has incurred costs of $4.6 million in relation to the Puffin Field joint venture maintenance of the field and decommissioning costs. No further impairments were considered necessary this year.
• During the year, AED Oil Limited was repaid the A$35 million deposit in relation to the Longtom Gas Project transaction that did not proceed, and AED commenced its investment into the South East Asia region through the agreements that AED reached with Nations Petroleum to acquire its 50% interest in Brunei (Block L) and a 100% interest in the Rombebai Contract Area and their 60% interest in South Madura Contract Area.
• AED Oil Limited continued to restructure its financing and the 2007 6.5% convertible notes have all now been exchanged or redeemed. AED then entered into new longer-dated financing facilities and is well positioned with long term finance in place to fund its expansion into South East Asia and its continued work on the Puffin Field.
The coming months are expected to be an exciting time for AED with the completion of the Lempuyang well and testing programs. We are confident about our current projects and are looking to establishing a solid base in Brunei and Indonesia to underpin the strategic direction the company has commenced. We are well positioned with a high quality portfolio of diverse projects and a strong balance sheet with over $64 million in cash at 30 June.
