Puffin takes flight

THE Stena Clyde drill rig has today spudded the Puffin-9 exploration well in Timor Sea permit AC/P22, AED Oil said. In addition, the company has been awarded production rights over the Puffin Field and has signed an FPSO (Floating Production, Storage and Offloading System) agreement.
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Puffin-9 is expected to take 27 days to reach a planned total depth of 3100m. The exploration well is on a separate geological structure off the main Puffin horst, about 1.8km south of Puffin-2, which tested oil in 1974.

The well will test multiple reservoir objectives including sandstones within the Triassic, Upper Cretaceous and Tertiary sections that have been mapped using recent pre-stack depth migration reprocessing of the 1998 Onnia 3D seismic survey.

Meanwhile, the Commonwealth Department of Industry, Tourism and Resources has accepted AED’s field development plan and is prepared to grant a production licence for the Puffin Field. The company must now formally apply for the licence within three months.

In addition, AED says it has entered into an agreement with a major international shipping group for the conversion to an FPSO and subsequent supply and operation of the MT Gerrita.

The agreement provides a fixed two-year lease with four one-year options. This will allow AED to participate in other projects using the FPSO.

The company expects production at the Puffin Field to start before the end of this year.

AED added that a preliminary independent technical report identified no major problems with the company’s field development plan.