The independent expert report commissioned by Exploration and Production Consultants increased P10 reserves by 35%, from 13.1 million barrels to 17.8 million barrels, and upped P50 reserves 20% to 14 million barrels, said AED.

Meanwhile, the simulation study estimates that Puffin-7 flow rates would remain at 15,000 barrels of oil per day during phase one development, scheduled to begin in February. Total production by the end of phase one is predicted at 2 million barrels.

AED said phase two, due to start in June 2006, would see Puffin-8 come on-stream in June 2006, increasing the daily estimated oil production to about 28,000 barrels per day.

“It should be noted that cumulative production from the Base Case reservoir simulation has been estimated as 14.7 million barrels, which exceeds the P50 reserves of 14 million barrels,” said AED CFO Trevor Slater.

“The variance is due to different statistical techniques utilised in reservoir flows estimation.”

The company says it initially intends to develop the field’s proved reserves found in the Puffin-5 and Puffin-2 wells, before exploring Puffin-9 two kilometres away from P-2.

AED has a 100% interest in AC/P22, which lies in the Vulcan Sub-basin of the Bonaparte Basin in north-western Australia.