UPDATE 1-AED says received approaches, may sell assets

(Adds details, background)

SYDNEY, Jan 10 (Reuters) - Australian oil and gas producer AED Ltd (AED.AX) said on Thursday it has appointed Macquarie Bank (MQG.AX) to conduct a review of its business and flagged that it might sell some assets to raise funds for new projects.

AED said in a statement that it has received several approaches from international and Australian oil firms wanting to invest in its fully-owned Puffin and Talbot oilfields off northwestern Australia.

"Macquarie is advising AED on ways in which the company may achieve its strategic objectives and will hold discussions with parties interested in participating in AED's assets," AED said in a statement.

AED said it has a range of potential projects but needs additional funding in order to pursue "significant opportunities as expeditiously as possible."

AED turned a market darling in June after it said it was likely to hold up to 100 million barrels of recoverable oil at its Puffin and Talbot fields, up sharply from an earlier estimate of 40 million barrels.

But its stock has plunged from a record A$11.40 in October to around A$4.50 following a November warning that technical problems could reduce production at its Puffin North East well short of initial forecasts of 30,000 barrels per day (bpd).

In December, production at the wells fluctuated between 6,000 and 10,000 bpd, AED said.

AED said new reservoir studies conducted on production data from Puffin-7 and Puffin-8 fields were "consistent with AED's previously published reserves."