Advance Energy PLC Board Changes and Corporate Update (9136Z)
28 January 2022 - 06:00PM
UK Regulatory
TIDMADV
RNS Number : 9136Z
Advance Energy PLC
28 January 2022
28 January 2022
Advance Energy plc
("Advance Energy" or the "Company")
Board Changes, Cost Reduction and Refocused Strategy
Advance Energy ( AIM:ADV ), the energy company seeking growth
through acquisition or farm-in to discovered upstream projects,
provides the following corporate update:
Key Points:
-- The Board has implemented measures to reduce the Company's cost base by over 50%
-- CEO Leslie Peterkin to leave the Company to support cost cutting measures
-- Larry Bottomley to assume Interim CEO role to drive new ventures
-- The Company remains fully funded for the current calendar year with no debt
-- The Board has refocused the strategy for the Company and is
actively progressing a pipeline of value accretive opportunities
within this new strategy
Following the recent results of the Buffalo-10 well, the Company
has undertaken a review of its cost structure in order to
significantly reduce costs. The Board has implemented measures to
reduce the Company's costs by over 50% through a number of
initiatives, including reducing salaries and Director fees by over
60%. To support these initiatives, CEO Leslie Peterkin has decided
to resign from the Company with immediate effect, and he will be
replaced on an interim basis by current Non-Executive Director
Larry Bottomley.
Following completion of the Buffalo-10 well and the settlement
of associated authorised costs, and supported by the initiatives to
reduce the cost base, the Board believes it has sufficient
liquidity to progress new business development through the current
calendar year.
The Board has refined the strategy for the Company, which is to
create a self-funding oil & gas production company to take
advantage of growth opportunities being generated as industry
players reshape their portfolios to manage energy transition to
net-zero emissions.
By concentrating on non-operated cash-generative assets and
capitalising on the current deal pipeline, the Company aims to
lever the time and cost expended in assessing potential new
ventures over the last year built on the Board's extensive industry
relationships. Ranging from Europe, Africa and the Far East, the
opportunities the Company is assessing are suitable for debt or
vendor financing, and the Company is currently -funded to mature
these options.
The Board is confident that it will enter into an agreement on
at least one opportunity in its pipeline this calendar year.
Commenting on the update, Non-Executive Chairman, Mark Rollins,
said:
" We thank Leslie for his efforts since the inception of Advance
Energy, including his decision to leave the Company in order to
reduce its cost base. The Board fully recognises the disappointment
of recent events and being wholly aligned with shareholders,
recognises what needs to be done to stabilise and re-build. Advance
Energy retains a high quality and well-connected Board which is
progressing a compelling business development pipeline .
"I would also like to thank Larry for stepping into the role of
leading the Company through this next stage of delivering new
business, no doubt with the energy and enthusiasm that he has
brought since joining the Company at the RTO."
Outgoing CEO Leslie Peterkin added :
"The outcome of the B-10 well was a huge disappointment given
the significant input that went into the project and the high
degree of confidence that it would result in a commercial
development. To support the Company with its efforts to reduce the
cost base, I have decided to step down, and leave the Company in
the very capable hands of the remaining Board who I have no doubt
will steer Advance Energy through these near-term challenges and
set the Company on a new long-term growth path."
Incoming Interim CEO Larry Bottomley added :
"Advance Energy has an exciting set of opportunities in the
business development pipeline and a motivated and high quality
Board focused on growing the Company. Reducing the cost base leaves
the Company with sufficient cash and no debt, and importantly
allows more time to assess and progress this pipeline.
"The Board are committed to delivering assets from the business
development pipeline and excited by the opportunity it offers, and
we look forward to updating the market as these progress. "
Enquiries:
Advance Energy plc
Larry Bottomley (Interim CEO) / Stephen West +44 (0)1624 681
(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 (as amended).
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END
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