14 Jan 2022 08:00
14 January 2022
Advance Energy plc
("Advance Energy" or the "Company")
Buffalo-10 Well Drilling Update
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 provide an update on the Buffalo-10 well being drilled offshore Timor-Leste.
The Operator, Carnarvon Petroleum Timor, Lda., has advised that, since the last announcement on 6 January 2022, the 13 3/8" casing has been successfully cemented in place and the well head installed. The 12 ¼" hole section was then drilled down to a depth of approximately 2,707 metres measured depth ("MD").
The rig is now setting and cementing the 9 5/8" casing before drilling ahead in the 8 ½" section hole to a planned depth of approximately 3,500 metres MD.
For operational efficiency, the 9 5/8" casing is being set at approximately 2,700 metres MD, with the geological markers in the 12 ¼" hole section having been intersected within the pre-drill range.
The Elang reservoir is anticipated to be encountered in the 8 ½" hole section. Wireline logs will be run over the Elang reservoir before determining if the well will be completed and suspended for potential future production.
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 pleased with the progress reported by the Operator, and the fact that we remain on prognosis is an encouraging indication that the geophysical interpretation is as we predicted. This bodes well as we prepare to drill ahead into the target Elang reservoir, and we look forward to offering further updates to the market in due course."
Enquiries:
Advance Energy plc Leslie Peterkin (CEO) / Stephen West (CFO) | +44 (0)1624 681 250 | ||
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Strand Hanson Limited (Financial and Nominated Adviser) Rory Murphy / James Harris / James Bellman | +44 (0)20 7409 3494 | ||
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Buchanan (Public Relations) Ben Romney / Jon Krinks | +44 (0)20 7466 5000 | ||
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Tennyson Securities Limited (Joint Broker) Peter Krens / Ed Haig-Thomas | +44 (0)20 7186 9030 | ||
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Optiva Securities Limited (Joint Broker) Christian Dennis | +44 (0)20 3411 1881 | ||
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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
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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.