TIDMADV
RNS Number : 8148Y
Advance Energy PLC
14 September 2020
14 September 2020
Advance Energy plc
("Advance Energy" or the "Company")
Operations 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 the following
operations update.
UNITED KINGDOM
Southern North Sea
As announced on 4 September 2020, the Company's wholly owned
subsidiary Resolute Oil & Gas (UK) Limited ("Resolute") and
Holywell Resources Limited ("Holywell"), a company in which Advance
Energy has a 25% interest, have each been awarded, subject to
documentation, a 50% working interest in block 43/25 and
part-blocks 43/29, 43/30, 48/4 and 48/5 in the Oil & Gas
Authority's ("OGA") 32nd Offshore Licensing Round.
Block 43/25 holds part of the Opal gas discovery with a 2C
resource of the order of 100 Bscf. The part-blocks 43/29, 43/30,
48/4 and 48/5 contain the well-established undrilled Badger gas
prospect. All five blocks are located in the Southern North Sea
with Holywell as the Operator. Accordingly, Advance Energy will
hold a non-operated, indirect 62.5% interest in the blocks. The
Company will, whilst waiting for the formal documentation from the
OGA confirming the license awards, review the technical information
available on the blocks and seek to agree the next steps with
Holywell; further updates will be provided as this process
progresses.
Wessex Basin
Offshore P1918 Colter & Colter South Licence
The Company's wholly owned subsidiary Resolute holds an 8%
non-operated working interest in the P1918 Licence. Further to the
completion of an appraisal drilling programme in 2019 the Operator
of the licence, Corallian Energy Limited ("Corallian"), has
completed an evaluation of the P1918 Licence and has recently
recommended to the joint venture that the licence not be renewed
when the second term expires on 31 January 2021 based on the
conclusion that the Colter South discovery could not be
commercially developed. Advance Energy agrees with the Operator's
recommendation.
Onshore PEDL 330 & 345 Licences
The Company's wholly owned subsidiary Resolute holds an 8%
non-operated interest in the PEDL 330 & 345 Licences.
Corallian, the Operator of the licences, is awaiting receipt of
third party 3D in order to assist with the evaluation of the
prospectivity of the PEDL 330 & 345 Licences. The first term of
the PEDL 330 & 345 Licences expires on 20 July 2021 unless the
joint venture commits to drilling a well by this date.
INDONESIA
Betun-Selo KSO
Advance Energy entered into an Operating Services & Option
Agreement ("Service Agreement") with PT Petroenim Betun-Selo, the
operator of the Betun-Selo KSO in Sumatra, Indonesia in 2015. The
Company has met its obligations under the Service Agreement.
During 2020 production from Betun-Selo KSO has been as
follows:
Production: 4 Well
Month Workovers
(barrels of oil per
day)
January 71
---------------------
February 73
---------------------
March 75
---------------------
April 74
---------------------
May 25
---------------------
June 30
---------------------
The production performance of the four worked-over wells after
April 2020 means that the Company did not realise any incremental
production from the Service Agreement beyond that date.
The Company views the Betun-Selo KSO as non-core and not in line
with the Company's forward strategy, and accordingly the Company is
considering its forward options in relation to the Service
Agreement and will provide a further update in due course.
The Betun-Selo KSO and P1918 Licence are capitalised on the
Company's balance sheet at $604,000 and $267,000 respectively as at
31 October 2019, the last balance sheet date.
NEW VENTURES
Further to the relaunch of the Company and completion of its
strategic review in March 2020, the Company continues to progress a
number of new venture opportunities. Whilst it is yet to agree
commercial terms in respect of such opportunities, the Board is
encouraged by its initial due diligence and the multiple, positive
funding discussions it has initiated. This is in line with its
focus on leveraging the deep industry experience and network of the
management team to identify and unlock hidden value in discovered
upstream projects that meet with the Company's required acquisition
or farm-in criteria, and build a portfolio of non-operated
positions generating at least 20 thousand barrels of oil equivalent
per day net production by mid-decade, or earlier.
Leslie Peterkin, CEO of Advance Energy, commented:
"As Advance Energy continues its transition underpinned by the
strategic pillars identified earlier this year, we continue to
manage our existing portfolio appropriately.
The recent licence awards in the Southern North Sea resulted
from an application made prior to the inception of Advance Energy,
and we will fully review their potential in order to maximise value
for our shareholders. Importantly, on other fronts, we continue to
actively screen a number of investment opportunities that are fully
consistent with our strategy and are most encouraged by the
progress we are making in that regard."
Enquiries:
Buchanan (Public Relations)
Ben Romney / Kelsey Traynor +44 (0)20 7466 5000
Beaumont Cornish Limited (Nominated Adviser)
Roland Cornish / James Biddle +44 (0) 20 7628 3396
Novum Securities Limited (Joint Broker)
Colin Rowbury +44 (0)20 7399 9427
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's email alerts, please complete the
following form:
https://www.advanceplc.com/media-centre/news/#alerts
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END
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