Should this stock rise on the back of the recent upward swing of AED Oil?

Read this:

http://sa.iguana2.com/cache/91c969b5...NWE-333304.pdf

5th September 2006
Norwest, having an over-riding royalty of 1.25% in the Puffin AC/P22
permit advises that:
gPuffin oil field grows dramatically


In a presentation at the eGood Oilf conference in Perth today, AED Oil Ltd revealed that its estimate of the volume of oil in AED Oilfs 100 per cent owned Puffin field, in the Timor Sea, has been expanded significantly.

This comes after an extensive review of data from the 11 wells drilled to date, reinterpretation of previous seismic data and access to new seismic information.

AED Oil, which plans to start producing crude oil from the field in the first quarter of next year, is also investigating drilling a further development well to increase oil production rates at first oil.
A major new interpretation of the Puffin oil field by consultants acting for AED Oil, has resulted in a substantial upgrade to the expected Oil Initially In Place (OIIP) and the regional prospectivity, enhancing the attraction of a number of existing exploration targets, as well as identifying new leads and prospects. Revised maps prepared by RPS Group PLC, a major international oil consulting group, have incorporated information from the recent Puffin-9 and Puffin-7 wells, integrating that information with data from all previous wells. These
maps will be finalised when the reprocessed Onnia seismic data becomes available.

Based on results of recent drilling and 3D seismic survey information recently obtained, AED Oilfs estimate of oil in place within Puffin North East has risen from 13 million barrels of oil (OIIP) to in excess of 90 million barrels (OIIP).

Oil initially in place (OIIP) refers to the estimated volume of hydrocarbon liquids in situ in the reservoir. Only a proportion of OIIP can be physically and commercially recovered to surface. This proportion is the recovery factor. AED Oil is currently calculating and evaluating the recovery factor by means of reservoir simulation
and other techniques. A revised reserve statement will be released following an independent review of this work.

AED Oil has recently drilled the Puffin-7 and Puffin-9 wells which has improved the understanding of the entire field.

As a result of the new interpretations and information AEDfs initial evaluation indicated the known oil bearing structures are likely to cover a much larger area, than previously envisaged, and should contain significantly greater volumes of oil than previously estimated. The increase in OIIP within the Puffin field is expected to
result in a subsequent increase in Proved Reserves.

AED Oil is currently determining Proved Reserves, which currently stand at (P90) 10.4 million barrels of oil, which were based on the pre-drill interpretations. A significant upward revision is expected on completion of ongoing studies expected to be completed in the fourth quarter of 2006.

Oil production from Puffin field is expected to commence early in 2007 using a Floating Production Storage and Offloading (FPSO) facility. First oil production will be from Puffin North East with initial flow rates of 18,000 barrels of oil a day.

Initial production rates could increase as recent work on Puffin North East suggests that drilling of a further
development well into the reservoir could increase initial production to around 30,000 barrels a day. AED Oil
is currently undertaking a study of the costs and process to complete an additional production well in time for
first oil. The company has a drill slot available in December 2006 and has much of the completion equipment
available. In addition, the company is reviewing the need for further wells to maximise future oil recovery.h
For further information contact
Mr. Joe Salomon
Telephone: +61 8 9227 3240
Email: info@norwestenergy.com.au