Timor Sea oil Find
September 30, 2008
THE Sinopec/AED joint venture has hit oil in its latest exploration well on the Puffin oilfield, raising hopes that production can be increased at the Timor Sea project.Locally listed AED said the Puffin 11 well in the south-west sector of the field had intersected oil-bearing sand at 2013 metres. Preliminary results indicate an oil column of more than 20 metres.Sinopec, as operator, is assessing the rock quality, permeability and porosity before anything definitive about the find is said. The well willbe followed up by Puffin 12 in the north-east sector.Both wells are part of the joint venture's plan to boost oil production from the oilfield. Sinopec paid $600 million for a 60% share of the 4000-barrel-a-day operation earlier this year.That production level is well short of the 15,000-30,000 barrels a day that were originally planned when AED had full ownership. The joint venture plans to get to 30,000 barrels a day by undertaking remedial action at the field's underperforming wells and by drilling more appraisal/development wells..Sinopec is the world's seventh-biggest oil company. AED shares traded as high as $1.81 but closed at their low for the day of $1.625, an increase of 0..5¢.
BARRY Fitz GERALD
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