AED Oil Limited wishes to provide the following update on the Lempuyang-1 well testing program. AED has made considerable progress on the procurement of downhole testing equipment and redesign. It is now anticipated that testing of the blue zone in the Lempuyang-1 well will recommence towards the end of the month.
As advised in the ASX release of 4 March 2011, testing of the Lempuyang-1 well (blue zone) resulted in the production of gas to surface. The test was terminated early because of a downhole mechanical failure resulting in the loss of pressure integrity of the test string.
The test identified gas but the mechanical failure meant that no hydrocarbon flow rates or volumes could be determined.
The interval between 2849 to 2867 mMDRT at the Lempuyang-1 well was perforated and was cleaning up with both gas and completion brine produced at the well head. The Lempuyang-1 well tests have so far identified gas in the two target intervals, being the blue and pink zones.
AED believes these results are very encouraging and will keep the market informed on progress.
In February 2010, a wholly owned subsidiary of AED Oil limited acquired a 50% stake in Block L from Nations Petroleum Company Limited, entering into a Joint Venture with Kulczyk and QAF and PetroleumBRUNEI.
Brunei is the third largest oil producers in South East Asia, averaging about 180,000 barrels of oil per day (bopd). It is also the forth-largest producer of liquefied gas in the natural world. Almost all of Brunei’s natural gas is liquefied at Brunei Liquefied Natural Gas (LNG) plant, which opened in 1972 and is one of the largest LNG plants in the world.
Block L is square 2,253 kilometres in size covering much of the eastern side of onshore Brunei Darussalam and also containing an offshore component. There has been some historic production on Block L, however, no exploration or development activities have been undertaken in this area in approximately 30 years. The giant Champion and Seria oil fields are both located within 25 kilometers of Block L and in recent times a large gas discovery has been announced by Brunei Shell Petroleum at Bubut less than 1 kilometer from Block L.
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Source: AED Oil, March 17, 2011 , 2011;