Aussie firm acquires Papua, E. Java exploration blocks

Australian firm AED Oil Limited (AED) announced on Friday that it has reached agreement with Nations Petroleum to acquire two of their wholly owned subsidiaries which hold interests in oil and gas Contract Areas in Papua and East Java.

Under the deal, AED through its subsidiary AED Oil Investments will hold a 100% interest in the Rombebai PSC onshore Papua and a 60% interest in the South Madura PSC onshore Madura island, East Java.

AED will 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. The area is located immediately to the north of the Santos operated Sampang block containing the Oyong, Anggur and Jeruk Fields, and to the south of the Bukit Tua and Jenggolo Fields. NPSM (South Madura) 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)