AED Oil in talks with investors to raise funds

Australia-listed firm AED Oil Limited is in an advanced stage of negotiations with a significant international investment group as potential investor to participate in the AED capital raising campaign.

"We expect to update the market on this matter shortly when negotiations have concluded," the company said in a filing to ASX on Thursday

AED Oil had previously raised $6.5 million from the issuance of new shares. The company plans to use the proceeds for its current operation in Brunei and Indonesia.

AED Oil said the proceeds will be used for, among others, operations in Rombebai block, West Papua, South Madura (East Java), and Timor Sea.

AED said the proceeds will be used for an additional geological analysis and pore pressure work in Rombebai block and pre-drilling cost for the Kare-1 well in early 2012.

Geological and physical activity in South Madura include seismic planning and interpretation of the Kujung carbonate leads and prospect in the South Madura PSC. (lucky)