AED Oil Limited, as operator of Block L, Brunei, provides an update on the testing programme currently underway at Brunei, Block L.

As advised in the ASX release of 18 Feb 2011, testing of the Lempuyang-1 well ('blue' zone) has commenced and has resulted in the production of gas to surface. The test was terminated prematurely due to production tubing integrity, however gas was seen to flow to surface but no hydrocarbons flow rates or volumes could be determined.

The interval between 2849 to 2867 mMDRT at the Lempuyang-1 well was perforated and at the cleaning-up stage, both gas and completion brine was produced.

The Lempuyang-1 well tests have so far identified gas in the two target intervals, being the blue and pink zones. The Block L Joint Venture plans to resume testing when all required testing equipment can be sourced, currently expected within the next month. AED will also revisit the testing plan and timetable for the Lukut-1 well test, following an internal assessment of the best way to achieve efficiency in testing and management of costs.

AED believes these results are very encouraging as they support the planned Phase 2 exploration work programme in Block L.

AED Executive Chairman David Dix said, 'These results further underpin our high level of confidence in the prospectivity and longterm growth potential of our Brunei acreage. Hydrocarbons have now been identified in both zones of our Lempuyang-1 well. While follow-up testing will be required to assess the volumetrics and potential flow rates from the Lempuyang-1 well, evidence to date supports our work program and the potential for commercial development'.

Tags: AED Oil