AED completes Papua, E. Java blocks acquisition

Australian firm AED Oil Limited reported on Friday that its wholly owned unit AED Oil Investments Pty Ltd, has completed the acquisitions of Nations Petroleum (Rombebai) BV (NPR) and Nations Petroleum (South Madura) BV (NPSM) from a subsidiary of Nations Petroleum Company Limited.

The acquisitions completed on 4 March 2010.

NPR holds a 100% interest in the Rombebai PSC in Papua while NPSM holds a 60% interest in the South Madura PSC, East Java.

AED said in February 2010 that it would pay Nations US$1.5 million and 12 million of AED shares for both transactions.

The Rombebai PSC covers an area of 5,795 sq kms and is located in northern coastal Papua.The PSC contains the large Gesa mega structure. Five exploration wells have been drilled within the PSC.

The South Madura PSC is primarily onshore and covers the southern part of Madura island. NPSM and its Joint Venture partners drilled the Kurnia 1 well in 2007 to test a large four way dip closure. The well encountered hydrocarbon shows in Early to Middle Miocene clastics and Early Miocene Kujung carbonates. The well recovered gas to surface but hole conditions prevented extended testing.

Interpretation of the recently completed 2D seismic survey (243 sq km) has identified a number of shallow exploration targets. The next well on the block will be the Gigir East-1 well, which is targeting one of those identified shallow structures. (alex)