“Production in the short-term has been significantly held back to facilitate gaslift and water handling systems commissioning and accordingly current production is running at approximately 10,000 barrels of oil per day,” Melbourne-based AED said.

“All systems should be fully commissioned and equipment matters resolved in the short-term.”

The Timor Sea project achieved an initial production rate of 27,000 barrels per day and AED was aiming to build to 30,000bpd. But it soon struck problems with sand mobilisation and water ingress and late last month ongoing production rates of between 20,000-25,000bpd are more likely.

The next offtake of 315,000 barrels is scheduled for November 29, AED said.

Meanwhile, the company is drilling ahead on its latest Puffin development well, which has intersected a minor oil-bearing sand as the drillbit nears the primary target UK1a sand.

AED said the Puffin-10 well was yesterday being drilled through the horizontal section at a measured depth of 3608m, or at a true vertical depth of 1997m.

“The main UK1a sand is expected to be intersected near the existing Puffin-2 well in the near future,” the company said.