Advance Energy PLC Buffalo-10 Drilling Update (1227Y)
May 11 2021 - 01:00AM
UK Regulatory
TIDMADV
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) +44 (0)1624 681 250
Strand Hanson Limited (Financial and Nominated Adviser)
Rory Murphy / James Harris / James
Bellman / Georgia Langoulant +44 (0)20 7409 3494
Buchanan (Public Relations)
Ben Romney / Kelsey Traynor +44 (0)20 7466 5000
Tennyson Securities Limited (Joint
Broker)
Peter Krens / Ed Haig-Thomas +44 (0)20 7186 9030
Optiva Securities Limited (Joint
Broker)
Christian Dennis +44 (0)20 3411 1881
For further information, please visit www.advanceplc.com and @advanceplc on Twitter
To register for Advance Energy's email alerts, please complete
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https://www.advanceplc.com/media-centre/news/#alerts
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END
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