AED 0.00% 14.5¢ aed oil limited

intersuisse buy recommendation

  1. 2,795 Posts.
    for those that haven't seen it. (and yes, even if it means waiting a month longer, it will still be there)

    Full report at
    http://www.intersuisse.com.au/files/Resources/AED%20Oil%20%20-%20Intersuisse%20-%207%20June%202007.pdf


    AED Oil Limited AED Thursday, 7 June 2007
    Talbot oil field acquisition has value from nearby Puffin infrastructure
    Recommendation Buy for imminent start to huge cash flows from Puffin oil
    Overview
    �� WAED Oil Ltd (AED) is an oil exploration company focused on developing high yielding wells in the Timor Sea. To date, the company has drilled two
    development wells in the Puffin field and expects production to commence early in the third quarter 2007 at a rate of about 30,000 barrels of oil per day
    �� The recent acquisition for $2.65 million of the Talbot oil field, contained in Retention Lease AC/RL1, is seen as a very attractive deal for AED as it has estimated total oil in place (TOIP) of 21.8 million stock tank barrels (Mstb),with a range of 13 to 30 Mstb. Compared to similar nearby fields, the recovery factor for Talbot is estimated to be slightly lower at 30% to 60% of
    the TOIP but the Talbot field is located only 60km from the company’s Puffin field, which means Talbot could be developed using some of AED’s Puffin infrastructure, leading AED to believe it may be able to bring Talbot into production by late 2008
    �� The Talbot oil field had previously achieved a flow
    estimated at 5,000 bopd and AED is evaluating
    development options for it in order to capitalise on the
    very attractive attributes and demand for Tapis crude,
    which now attracts a significant and growing
    premium to the major benchmark oil prices because of its relatively low sulphur content
    �� The pay back period for the Puffin project at current oil prices ($US75 for the keenly sought Tapis crude) should be rapid and the project highly profitable. The recent debt financing of $75million was available to the company given the earning potential of the wells
    Location map of the Talbot Oil Field
    (AC/RL1 within the Bonaparte Basin)
    Impact We recommend AED as a buy for investors with the appropriate risk profile seeking exposure to new oil production commencing Q307 with upside from
    additional development and exploration in the Talbot fields
 
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