Buffalo-10 Drilling Update

RNS Number : 1227Y

Advance Energy PLC

11 May 2021

 

11 May 2021

Advance Energy plc

("Advance Energy" or the "Company")

Buffalo-10 Drilling Update

Advance Energy plc ( AIM:ADV ), the energy company seeking growth through acquisition or farm-in to non-operated interests in discovered upstream projects, is pleased to announce the following Buffalo-10 drilling update provided by Carnarvon Petroleum Limited ("Carnarvon") (ASX:CVN).

Highlights

· Buffalo-10 well is planned to be drilled in the fourth quarter of 2021

· Advance Energy's payment of US$20 million to acquire a 50% interest in the Buffalo PSC will be utilised for the drilling of the Buffalo-10 well

· Procurement of long lead equipment has commenced and is progressing well

· The tender process for a drilling rig is nearing completion

Petrofac, who are undertaking the drilling management services for the well, has identified the necessary long lead equipment to ensure the Buffalo-10 well is able to be drilled prior to the end of 2021.

As announced on 19 April 2021, following the completion of the recent successful placing, the Company's wholly owned subsidiary Advance Energy TL Limited has paid US$20 million to acquire a 50 per cent. interest in the Buffalo PSC, Offshore Timor-Leste.  These funds will be utilised to fund the drilling of the Buffalo-10 well.

The procurement of long lead equipment has commenced, with orders placed for the supply of conductor pipe, wellhead, liner hanger and associated services. This long lead equipment is planned to be available before the end of the third quarter of 2021.

A tender process for the drilling rig is nearing completion, with the requirement for a suitable jack-up rig to be available in the fourth quarter of this year .

Carnarvon has also commenced the process of securing the necessary Timor-Leste Government approvals for drilling the Buffalo-10 well.

Advance Energy's CEO Leslie Peterkin commented:  

"We are delighted to hear this progress from Carnarvon to ensure drilling of the Buffalo-10 well is on track for later this year.

The drilling of this well is transformational to Advance Energy, representing a material value catalyst for the Company and our shareholders. In the success case, there is potential to deliver a gross production rate of around 40,000 barrels per day by the end of 2023, which in this current pricing environment would deliver exceptionally strong cash flow and compelling rates of return.

We are very excited for what the next six months may bring and will continue to provide updates to the market as we approach the various milestones of drilling activity on the Buffalo-10 well."  

Enquiries:

 

Advance Energy plc
Leslie Peterkin (CEO) / Stephen West (CFO)	[phone]
Strand Hanson Limited (Financial and Nominated Adviser)
Rory Murphy / James Harris / James Bellman / Georgia Langoulant	[phone]
Buchanan (Public Relations)
Ben Romney / Kelsey Traynor	[phone]
Tennyson Securities Limited (Joint Broker)
Peter Krens / Ed Haig-Thomas	[phone]
Optiva Securities Limited (Joint Broker)
Christian Dennis	[phone]

 

For further information, please visit www.advanceplc.com   and @advanceplc on Twitter

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