(Sharecast News) - Advance Energy announced on Friday that Carnarvon Petroleum Timor has chosen not to enter the next period of the TL-SO-T 19-14 production sharing contract on the Buffalo licence.
The AIM-traded firm said that as a result, the licence would lapse on 27 May, resulting in the company becoming an AIM Rule 15 cash shell.
"As an AIM Rule 15 cash shell, the company is required to make an acquisition, or acquisitions, which constitutes a reverse takeover under AIM Rule 14 within six months from 27 May," the board said in its statement.
"Alternatively, within such a time period, the company can seek to become an investing company pursuant to AIM Rule 8, which requires the raising of at least £6m and publication of an admission document."
Advance Energy said it was evaluating a number of oil and gas opportunities, with an "emphasis on materiality and cash flow generation", in line with its stated strategy.
"Further announcements will be made as and when appropriate."
At 1037 BST, shares in Advance Energy were down 24.32% at 0.14p.
Reporting by Josh White at Sharecast.com.
