Block L Update
- Retesting at Lempuyang-1 well suspended due to mechanical difficulties
- Gas produced to surface
- Seismic programme planning completed
- Two potential reservoir horizons identified below Total Depth at Lempuyang remain untested
AED Oil Limited (ASX:AED) wishes to update the market in relation to its current testing programme at Brunei Block L and its forward plans for the Block.
Testing Update – Lempuyang-1
During the last few days, AED recommenced work in preparation for retesting of the Lempuyang-1 well. During this process, we have continued to experience mechanical and equipment issues with the well and have shut in the well. We will continue to assess the situation and will update the market once further information is available.
Lempuyang Testing Analysis
While the test results have not allowed a complete assessment of the Lempuyang-1 well thus far, AED is still encouraged by the results to date, including:
- identification of mobile gas in the two target intervals;
- gas produced to surface; and
- interpretation of a drainage area consistent with geological mapping supporting the trap integrity and structural interpretation of the Lempuyang prospect.
Phase-2 Exploration update
AED remains optimistic that the southern area remains a significant exploration objective. A recent evaluation of the Vertical Seismic Profile (VSP) data from the Lempuyang-1 well has shown that two potential reservoir horizons below the Total Depth of the well have not been intersected and remain untested. The recently acquired aerial gravity and magnetic survey over Block L highlights potential updip prospectivity east of our current 3D seismic.
We intend to focus on acquiring seismic over the Jerudong Field with the potential for oil development.
Phase 2 Work Programme, 2011
In addition to the current testing programme, AED currently anticipates that the following exploration activity will occur at Block L in the near term:
1. Seismic acquisition at West Jerudong. AED plans to capitalize on the current high oil prices by shooting 130km2 3D seismic over the Jerudong oil field. This field was previously produced and shut-in without being fully depleted. The area has only limited 2D seismic coverage and AED intends to acquire 3D seismic to delineate additional potential oil pools.
2. A 3D seismic patch (13km2) and 2D seismic line (13km) east of the Lempuyang-1 well will be acquired to confirm structural rollover, as a precursor to a contingent extension to the 3D seismic programme of up to 150km2.
The forward plan is shown in the ASX announcement.
The Block L Joint Venture is made up of AED SEA (50% operating interest), Kulczyk Oil Ventures (40%) and QAF Brunei (10%).
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