Advance Energy PLC Buffalo-10 Drilling Update (6175D)
June 30 2021 - 1:30AM
UK Regulatory
TIDMADV
RNS Number : 6175D
Advance Energy PLC
30 June 2021
30 June 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 provide an update on
the Buffalo-10 well drilling operations, including the selection of
a jack-up drilling rig for the expected commencement of drilling in
late October 2021.
Highlights
-- The Operator, Carnarvon Petroleum Limited ("Carnarvon")
(ASX:CVN) has announced an update on the Buffalo-10 well drilling
operations
-- A jack-up drilling rig for the Buffalo-10 well has been selected
-- A Letter of Intent ("LOI") has been agreed and the formal rig contract is being finalised
-- On the current schedule, drilling of the well is expected to commence in late October 2021
-- The results of the well can be expected to be available in late November/early December 2021
After an Invitation to Tender process, a jack-up drilling rig
has been selected as the preferred rig for drilling the Buffalo-10
well. Carnarvon has entered into a LOI with the rig contractor, and
a formal contract, consistent with the terms of the LOI, is now
being finalised. Carnarvon is expecting to take possession of the
drilling rig upon the completion of its current drilling
operations, which is planned to occur around the end of October
2021.
The final well timing will be subject to securing remaining
drilling support services and equipment, and joint venture and
regulatory approvals, all of which are in progress and are not
expected to impact the well's expected commencement date.
The Buffalo-10 well is designed to test the presence of a
significant attic oil accumulation remaining after the original
development and convert the 2C resources of 34.3 MMstb to 2P
(proved and probable) reserves following re-certification.
Advance Energy's CEO Leslie Peterkin commented:
"We are delighted to hear this progress from Carnarvon, which
signals a key milestone in the process of re-developing the Buffalo
field. It is also important to note that the selected rig will have
drilled four wells before arriving on site at the Buffalo field,
which means that the crew and the rig operations will be at their
most efficient.
As a reminder to shareholders, the drilling of this well is
transformational to Advance Energy, representing a potential
material value catalyst for the Company. In the case of the 2C
resource being established as reserves, there is potential to
deliver a gross production rate of around 40,000 barrels per day
(20,000 barrels per day net to Advance Energy) by the end of 2023,
which in this current pricing environment would deliver
exceptionally strong cash flow and compelling rates of return.
We look forward to providing further updates in the next few
months as we continue to progress towards the well drilling in
October 2021."
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
the following form:
https://www.advanceplc.com/media-centre/news/#alerts
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018.
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END
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