AED Oil has begun a formal search for a farm-in partner for its Rombebai project in Indonesia.

The company has already received expressions of interest from potential partners and has opened its data room to selected parties.

AED said in its June quarterly that bids were due at the end of August, with the farm-in process expected to be completed in September.

Rombebai, which covers 5795 square kilometres in Papua, includes the Gesa structure and five exploration wells, four of which had gas shows.

The first well on the Gesa prospect, Kare-1, is expected to be drilled in late 2010 or early 2011.

The company is targeting a prospective resource in excess of 7 trillion cubic feet of P50 in-place gas with potential upside of more than double this estimate.

AED believes there is also significant potential for a major oil find.

During the June quarter AED completed the identification of its drilling locations and is currently reviewing drilling engineering and well designs to drill Kare-1 to a depth of about 2500m.

AED is also progressing its South Madura project with the interpretation of 2D seismic identifying a number of potential targets.

The joint venture partners decided to drill a shallow structure, which, if a discovery is made, could be quickly developed for the local domestic market.

AED said the potential for cash flow in the near term would support the proposed drilling program.

The company expects future exploration activity to focus on deeper play types including that identified by the Kurnia-1 well, drilled by the JV partners in 2007-08.

The well is located in the south of the South Madura Contract Area and identified a four-way dip closure in two main structures.

AED holds a 100% stake in the Rombebai contract area and a 60% interest in the South Madura contract area.

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