Kulczyk set for control of Brunei block

Offshore staff

CALGARY, Canada – Kulczyk Oil Ventures (KOV), has entered into a sale and purchase agreement to acquire all issued shares of AED Southeast Asia.

The transaction will increase KOV’s stake in Block L offshore/onshore Brunei to 90%.

AED currently has a 50% operating interest in the PSA for Block L, giving it the right to explore for and produce oil and gas from the block.

Block L covers 1,110 sq km (428 sq mi). Its size was recently reduced by 50% as part of the mandatory Phase 1 relinquishment process.

A 143-sq km (55-sq mi) 3D seismic program is under way and two additional exploration wells should be drilled prior to the end of the Phase 2 exploration period.

Following closure of the acquisition, Kulczyk Oil Brunei will have a 40% interest in the PSA and new subsidiary AED SEA (operator) 50%. The remaining 10% interest will be retained by a private Brunei company.

12/07/2011