6 Jan 2022 07:00
6 January 2022Â
Advance Energy plc
("Advance Energy" or the "Company")Â
Buffalo-10 Well Drilling Update
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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.
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The Operator, Carnarvon Petroleum Timor, Lda., has advised that since the last announcement on 31 December 2021, the conductor has been installed and cemented in place, and the 17 ½" hole has been drilled down to planned section total depth of approximately 804 metres measured depth ("MD").
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The rig is now setting and cementing the 13 3/8" casing and installing the wellhead, before drilling ahead in the 12 ¼" hole section to approximately 2,800 metres MD and then setting the 9 5/8" casing, after which the target Elang reservoir interval will be drilled and logged.
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No hydrocarbons are anticipated to be intersected in the 12 ¼" hole section of the well.
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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.
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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.
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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.
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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.
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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.
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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%."
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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.
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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.