Floated about a year ago with the intention of developing the Puffin oil field off North Western Australia. Drilling of 2 wells (Puffin 7 and 9) has been completed and has been successful. Estimated recoverable reserves from these wells are around 10-14million barrels from P7 and 3-5million barrels from P9 both with considerable upside and due to be analysed in-depth over coming weeks.

Now here is the juicy part ... Recently completed flow testing from P7 has shown a sustainable flow-rate in excess of 15000bopd and the potential to flow 35000bopd when other Puffin wells are brought online later on [:0]. Oil is scheduled to start flowing from Q1 next year so at an oil price of say $70 a barrel an expected minimum of over $1m of cash inflow per day can be expected. Project financing has already been secured with CBA which only required a small amount of hedging so there is considerable upside from a booming oil price. With these reserves which will probably be increased after urther drilling and testing and the staggering flow rates AED could be earning well over $100m NPAT for the next couple of years giving it a massive amount of cash to pursue other substantial interests. Current market cap <$100m. Yep looks damn cheap on forward PE of less than 1.... [8)] didn't believe it first but can't see why it wouldn't happen?? Of course there are a few minor hurdles that need to be overcome before production starts and there will probably be some inevitable delays but definitely one to keep an eye on.....

A recent article from The Age
http://www.theage.com.au/news/busine...150124548.html

Disc: Hold AED, please do your own research before deciding whether to buy, sell or hold stocks