Advance Energy PLC Buffalo Project Update (3036Z)
24 January 2022 - 6:00PM
UK Regulatory
TIDMADV
RNS Number : 3036Z
Advance Energy PLC
24 January 2022
24 January 2022
Advance Energy plc
("Advance Energy" or the "Company")
Buffalo Project Update
Advance Energy ( AIM:ADV ), the energy company seeking growth
through acquisition or farm-in to non-operated interests in
discovered upstream projects, provides the following update on the
Buffalo-10 well, located offshore Timor-Leste.
The Operator, Carnarvon Petroleum Timor, Lda., has advised the
Company that since the last update the wireline logging operations
have been completed with only residual oil being encountered.
The well will therefore be plugged and abandoned, and the rig
demobilised.
Leslie Peterkin, CEO of Advance Energy, commented:
"The results of B-10 are both disappointing and hugely
surprising given the independently verified risk assessment which
confirmed a highly likely commercial outcome from the well. Across
the JV, we invested a significant amount of technical work into the
project which underpinned our high degree of confidence that the
well would unlock the significant value of the field.
The post-well evaluation indicates that the well was drilled
into the hanging wall of a fault, although uncertainty in seismic
resolution also contributed to the reservoir being significantly
deeper than expected at this location. It is not the case that this
result means that all of the attic oil volumes certified by RISC
have been negated. The Buffalo Joint Venture will conduct further
technical analysis in the coming weeks to fully understand why the
attic was not encountered as prognosed at the drilled location.
We believe it is likely that the JV will relinquish the Buffalo
asset as neither company wishes to fund a second appraisal well in
the field.
Looking ahead, Advance Energy remains funded for the immediate
near-term and the team has been working on a pipeline of
identified, attractive opportunities. We will now turn our full
attention to bringing at least one of these to fruition this year.
These are value accretive opportunities and include an opportunity
with cash flow, which would be suitable for debt or vendor
financing. Our immediate priority will be to significantly reduce
costs while we assess the next steps for the growth of the
Company."
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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