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.
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