Advance Energy PLC Buffalo Project Update (4035W)
22 December 2021 - 5:59PM
UK Regulatory
TIDMADV
RNS Number : 4035W
Advance Energy PLC
22 December 2021
22 December 2021
Advance Energy plc
("Advance Energy" or the "Company")
Rig Mobilised for Buffalo-10 Well
Advance Energy ( AIM:ADV ), the energy company seeking growth
through acquisition or farm-in to non-operated interests in
discovered upstream projects, is pleased to provide the following
update on the Buffalo project offshore Timor-Leste (the "Buffalo
Project") ahead of the drilling of the Buffalo-10 well.
The Operator, Carnarvon Petroleum Timor, Lda., has advised
Advance Energy that the Valaris JU-107 jack-up rig is currently
en-route to the Buffalo-10 well location, with spudding of the well
expected to commence within one week.
The estimated time to drill and complete the well is around 35
days.
The base case well design is:
-- Drill 36" x 26" hole and set 30" x 20" conductor at around 120 metres
-- Drill 17 1/2" hole and set 13 3/8" surface casing at around 800 meters
-- Drill 12 1/4" hole and set 9 5/8" intermediate casing at around 2,800 metres, and
-- Drill 8 1/2" hole and set 7" production liner to approximately 3,500 metres
Once the oil column encountered has been determined from
wireline logging, the Buffalo-10 well will likely be suspended,
ready for re-entry as a production well for the future Buffalo
field re-development, assuming commerciality is proven.
The Buffalo-10 well is being drilled offshore Timor-Leste within
the TL- SO T19-14 Production Sharing Contract (PSC) in a water
depth of approximately 30 metres.
http://www.rns-pdf.londonstockexchange.com/rns/4035W_1-2021-12-21.pdf
The well is being drilled to test for the presence of commercial
quantities of high-quality light oil that is expected to lead to
the early re-development of the Buffalo field.
RISC Advisory certified the mid case recoverable volume in the
Buffalo field to be 34 MMstb (gross, 2C contingent resource), and
the primary objective of the Buffalo-10 well is to demonstrate the
presence of a significant, previously undrilled attic oil
accumulation and for this resource to be converted to 2P
reserves.
Furthermore, the CPR developed by RISC in March 2021 has
demonstrated that an economic development of the 1C resource of 16
MMstb would be viable down to an oil price of $35. It is therefore
considered that there is a strong likelihood that the Buffalo-10
well will confirm an economic development project, with RISC's CPR
stating that: "RISC estimate the probability of development to be
86%."
Leslie Peterkin, CEO of Advance Energy, commented:
"As previously noted, the drilling of this well is
transformational to Advance Energy, representing a material value
catalyst for the Company and our shareholders, and we are excited
to report today's operational milestone. We look forward to
providing further updates as the drilling program progresses."
Enquiries:
Advance Energy plc +44 (0)1624 681
Leslie Peterkin (CEO) / Stephen West (CFO) 250
Strand Hanson Limited (Financial and Nominated
Adviser) +44 (0)20 7409
Rory Murphy / James Harris/ James Bellman 3494
Buchanan (Public Relations) +44 (0)20 7466
Ben Romney / Jon Krinks 5000
Tennyson Securities Limited (Joint Broker) +44 (0)20 7186
Peter Krens / Ed Haig-Thomas 9030
Optiva Securities Limited (Joint Broker) +44 (0)20 3411
Christian Dennis 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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