AED intends to develop its known oil reserves and explore several prospects on its offshore acreage in the Timor Sea, about 80km south-west of the Jabiru and Challis oil fields and 20km north-west of the Skua oil field.

Equity raised from the initial public offer of 64.7 million shares at 85 cents each, fully underwritten by Commonwealth Securities, will primarily be used for work on the Fairfield prospect and the Puffin field.

AED will start with a two-well development of the Puffin field, then drill an exploration well on the Fairfield prospect, about two kilometres south of Puffin.

Puffin has proven reserves of 10.4 million barrels of oil and is expected to begin production in the second quarter of 2006, initially producing 30,000 barrels of high quality, sweet light crude a day.

AED has also obtained indicative terms for a $60 million debt facility from Westpac and Commonwealth Bank.