TIDMADV

RNS Number : 1110X

Advance Energy PLC

31 December 2021

31 December 2021

Advance Energy plc

("Advance Energy" or the "Company")

Buffalo-10 Well Drilling Commenced

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 announce that the Valaris JU-107 jack-up drilling rig has commenced operations at the Buffalo-10 well location, offshore Timor-Leste.

The Operator, Carnarvon Petroleum Timor, Lda., has advised that the drilling rig has successfully concluded the ready to operate process and has drilled the surface hole and installed the surface casing. The well is currently drilling ahead in the 17 1/2 " hole section at a depth of approximately 120 metres.

The rig will drill the 17 1/2 " hole to the planned section depth of approximately 800 metres followed by setting of the 13 (3) /(8) " casing. The 12 1/4 " hole section will then be drilled to approximately 2,800 metres before setting the 9 (5) /(8) " casing.

No hydrocarbons are anticipated to be intersected in these first two sections of the well.

The Buffalo-10 well is being drilled offshore Timor-Leste within the TL- SO T19-14 Production Sharing Contract in a water depth of approximately 30 metres with a target depth of approximately 3,500 metres.

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.

Leslie Peterkin, CEO of Advance Energy, commented:

"We are delighted to hear this progress from the Operator as we hit another operational milestone. The joint venture is working hard to conclude the drilling program in the coming weeks and remains confident that the Buffalo-10 well will be a geological and economic success. We look forward to providing further updates in due course. "

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

About the Buffalo Project

The Buffalo Project objective involves redeveloping the Buffalo oil field in the Timor Sea. The field resides in only 30 metres of water with a reservoir depth between 3,200 and 3,300 meters below the sea bed.

The previous field proved the existence of very high deliverability reservoir containing high quality light oil that is expected to sell at a premium to Brent in today's market.

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%."

For the above reasons, the Operator is working on plans to compress the timeline to first production once the Buffalo-10 well confirms a commercial oil resource. These plans include engaging with industry for supply and installation of suitable equipment to produce the oil.

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

UPDTMBPTMTJJBBB

(END) Dow Jones Newswires

December 31, 2021 01:59 ET (06:59 GMT)

Advance Energy (LSE:ADV)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Advance Energy Charts.
Advance Energy (LSE:ADV)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Advance Energy Charts.