Testing Preparations Progress at Lempuyang-1 Well, Block L, Brunei
AED Oil Limited (ASX Code: AED) has made significant advancements in the preparations for testing of its two prospective oil and gas wells in Brunei Block L, Lempuyang-1 and Lukut-1.
Since the last Block L update in December, AED has made important operational progress, including:
- Mobilisation of the testing rig on site at the Lempuyang-1 well;
- Completion of HAZID hazard identification studies, showing acceptable risks for testing;
- Completion of construction of the flare pit at the Lempuyang-1 well; and
- The permit for explosives has been received and importation is underway.
These advancements mean that testing of Lempuyang-1 is likely to commence mid-January 2011 as previously advised, once final components have been installed and works completed.
Testing of Lempuyang-1 will be followed by the testing of Lukut-1. AED will update the market periodically in relation to testing progress.
The recently announced $20 million convertible note funding arrangement will be used to fund the current testing, continuing exploration and development at Brunei Block L, with the first note expected to be issued shortly. Prior to issue of the new convertible notes, AED currently has approximately $40million in cash and liquid securities.
Download this document
