MELBOURNE, Australia -- AED Oil Ltd. has signed a time charter agreement with Japan's MODEC Inc. for the MODEC Venture 1 (MV1) FPSO for the Puffin South West field off Australia. The contract also covers planned drilling and development at Puffin SW, which is expected to produce 25,000 b/d of oil.
TheMODEC Venture 1, which has production capacity of 32,000 b/d and storage capacity of 750,000 bbl, was released from the Elang/Kakatua field at the end of July. MODEC will redeploy and install the facilities at Puffin SW, including mooring, flowlines, umbilicals, and risers as part of the agreement.
The FPSO will undergo minor modifications and maintenance prior to beginning this work for AED.
On July 2, 2007, AED announced a 40 MMbbl contingent resource for the Puffin SW region.
AED plans to start drilling a bilateral appraisal/development well, Puffin-10, in Oct. 2007.