The Melbourne-based midcap said it has taken a major step towards achieving first production, with the connection of the floating production storage and offloading (FPSO) vessel, Front Puffin, to the mooring-riser system.
The mooring-riser system holds the FPSO on location, as well as connecting the subsea system to the vessel.
AED said it had finished installing the subsea systems, which along with the controls was now being hydro-tested.
But it has not been all plain sailing for the company, with initial testing results identifying a seal and a connector needed replacing.
“The diving vessel is presently on route to Darwin to change over the diving crew and to restock supplies,” the company said.
“Upon its return to the field the remedial work is expected to take approximately one week. Accordingly AED is on track for First Oil around the end of this month.”
AED Oil has a 100% participating interest in Puffin and the AC-P22 exploration permit and AC-L6 production licence, all of which are in the Vulcan Sub-Basin of northwestern Australia.
Perth-based junior Norwest Energy holds a 1.25% overriding royalty interest in production from Puffin, which it says could be worth $A70 million or more to the company.