Bloomberg News

AED Oil Shares Drop as Well Fails on Puffin Field in Australia

January 09, 2009

AED Oil Ltd., the Australian company that last year sold 60 percent of the Puffin venture to China Petrochemical Corp., fell the most in almost a year in Sydney trading after a well failed at the field off the northern coast.

Melbourne-based AED Oil dropped 25.5 cents, or 20 percent, to A$1.01 on the Australian stock exchange, lagging behind a 0.4 percent decline in the exchange’s benchmark energy index.

An assessment of the Puffin-12 ST3 well shows that while the sand contains oil, the column isn’t thick enough to warrant completing the well given current prices, AED said today in a statement to the exchange. The well will be suspended as other drilling targets are being evaluated, it said.

The well was the second in a two-well program at the field in the Timor Sea seeking further reserves for development. Crude oil futures in New York have dropped more than 70 percent since reaching a record of $147.27 a barrel on July 11.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net.

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net.


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