The Melbourne-based company said on Friday that it has received independent advice suggesting that output from the field was lower than the initial forecasts of 30,000 barrels of oil per day due to “wellbore impairment”.

In the past month, production levels from the field have been fluctuating between the 6000 barrel and 10,000 barrel mark, AED said.

“Independent advice received to date suggests that production being lower than initially forecast is due to wellbore impairment most likely caused by drilling and completion related factors,” AED said.

“These factors include the prolonged drilling of the horizontal well sections (and subsequent static pre-production periods) that may have led to the blocking of a number of sand screens possibly exacerbated by chemicals associated with the polymer-based drilling mud.

“In addition to remedial works to be undertaken, establishment of the source of these factors should assist in reducing the likelihood of these issues arising in future well completions.”

To date, the Puffin oil field has produced over 900,000 barrels of high quality Tapis oil.

AED added that it continued planning the Puffin NE1 six-well program, flagging the Puffin-11 bi-lateral production well for spudding in mid 2008.

“This is anticipated to increase production by an initial increment of 20,000bopd (declining in accordance with a normal depletion profile),” the company said.

“AED has two drilling options available within the next 12 months.”