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The announcement follows a trading halt in AED shares last week, when the company reported it was considering offers from a number of unnamed parties over the sale of some of its assets.
In a statement yesterday, AED said it had started negotiations with one of the interested parties, which it said has received all internal approvals for the deal. AED wholly owns the Puffin and Talbot oil fields in the Timor Sea.
"The company notes that if an agreement is entered into and completed in respect of
this proposal, it will be in a position to extinguish its bank debt and repay creditors," AED said.
"The company in these circumstances will also have sufficient cash resources to
exploit its previously identified development and exploration opportunities at the Puffin and Talbot fields."
AED is overdue in paying Norwegian oil services firm AGR Group $41.5 million in debt for its Puffin oil field, which has been producing at significantly lower rates than expected.
