AED Oil Ltd, which sold a controlling interest in its oil fields to China's Sinopec Group this year, says it is looking at potential acquisition opportunities throughout Australia.
Executive chairman David Dix said the company would look at acquisitions as they arise but would ensure that the company maintained a healthy balance sheet amid the uncertain economic environment.
"We are in a position, I think, to join with others who might have short-term funding needs," Mr Dix told reporters on a conference call on Wednesday.
AED has $300 million cash after it sold 60 per cent of its Puffin and Talbot oil fields off the north Western Australian coast to Sinopec for $US550 million ($A843.43 million).
The company was forced to seek funding alternatives after production problems at the Puffin North-East field and expected delays to the Puffin South-West growth project emerged.
Puffin North-East was originally expected to produce up to 30,000 barrels of oil per day, but flow rates have dropped to just over 3,100 barrels per day after problems with two wells.
AED managing director Ken Tregonning said the company was planning remediation work for the Puffin 7 well, and possible the Puffin 8 well, to resolve flow issues and increase oil production.
Mr Tregonning said the company evaluating and planning for the development of the Puffin South-West area and the Talbot oil field, located 60 kilometres north of the Puffin field, over the next two years.
"We have available to us now two FPSO's (floating, production, storage and offloading ship) and we'll be aiming for one on Talbot and one with a large capacity on Puffin," Mr Tregonning said.
AED shares gained nine cents to close at $1.08.
© 2008 AAP
