OPERATORS of PetroleumBRUNEI's Block L, AED Oil Limited, announced that it had entered into a new US$20 million ($28 million) financing arrangement with La Jolla Cove Investors, Inc, which will be used primarily to finance Brunei costs including further exploration, well testing and phase two development activities in the onshore Block L.
AED's Executive Chairman, David Dix, in a letter to holders of nine per cent of the company's Unsecured Convertible Notes, said that the funding will provide the cash flow to meet the current budget and to fund testing of the Lempuyang-1 and Lukut-1 wells in January 2011 and further exploration and development opportunities on Block L.
Dix also stated that the funding should also give shareholders additional security regarding AED's ongoing funding position.
AED also announced that the company is in the position to commence well testing of the Lempuyang-1 and Lukut-1 this month and is looking toward the completion in March, of the acquisition of a 50 per cent operating interest in Block L in Brunei, one of Asia's most prospective hydrocarbon regions.
In regards to the company's development, Dix said that they "eagerly anticipate significant corporate developments over the next few months including commencement of Brunei's Lempuyang-1 testing in mid-January 2011, followed by the testing of Lukut-1".
On January 18, 2011, AED's Company Secretary Trevor Slater, announced in a statement that they have commenced testing operations and is targeting the completion of drilling at the Lempuyang-1 and Lukut-1 in October.
"All equipment, contractors and approvals have now been obtained and will be progressively mobilised as required," the statement said.
"The testing of the Lukut-1 well is scheduled to commence immediately following completion of the testing of Lempuyang-1 and will utilise the same testing equipment, rig and contractors," it added further.
In respect of the Lempuyang-1 testing, AED expects that, barring unforeseen circumstances, it will be in the position to make announcements to the market on January 28 and February 7 respectively.
On December 25, 2009, AED Oil entered into a binding sale and purchase agreement to acquire 100 per cent of Nations Petroleum Company and its prospective assets in Brunei.
Under the agreement, AED has paid US$3 million ($4.2 million) in cash and will issue 24 million fully paid ordinary shares to Nations.
Nations Petroleum previously held a 50 per cent interest in Block L, but with the agreement, Nations will end up with a 14.5 per cent holding in the company at the deal's completion.
The other 50 per cent of the Brunei Block L consortium is owned by Kulczyk Oil Ventures (40 per cent) and QAF Brunei with the remaining 10 per cent.
On March 11, 2010, the acquisition was successfully completed forming AED South East Asia Limited, a subsidiary of the Melbourne-based company.
The Brunei Times
No comments:
Post a Comment