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22 Dec 2021 07:00
22 December 2021
Advance Energy plc
("Advance Energy" or the "Company")
Rig Mobilised for Buffalo-10 Well
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 the following update on the Buffalo project offshore Timor-Leste (the "Buffalo Project") ahead of the drilling of the Buffalo-10 well.
The Operator, Carnarvon Petroleum Timor, Lda., has advised Advance Energy that the Valaris JU-107 jack-up rig is currently en-route to the Buffalo-10 well location, with spudding of the well expected to commence within one week.
The estimated time to drill and complete the well is around 35 days.
The base case well design is:
· Drill 36" x 26" hole and set 30" x 20" conductor at around 120 metres
· Drill 17 1/2" hole and set 13 3/8" surface casing at around 800 meters
· Drill 12 1/4" hole and set 9 5/8" intermediate casing at around 2,800 metres, and
· Drill 8 1/2" hole and set 7" production liner to approximately 3,500 metres
Once the oil column encountered has been determined from wireline logging, the Buffalo-10 well will likely be suspended, ready for re-entry as a production well for the future Buffalo field re-development, assuming commerciality is proven.
The Buffalo-10 well is being drilled offshore Timor-Leste within the TL- SO T19-14 Production Sharing Contract (PSC) in a water depth of approximately 30 metres.
http://www.rns-pdf.londonstockexchange.com/rns/4035W_1-2021-12-21.pdf
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.
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%."
Leslie Peterkin, CEO of Advance Energy, commented:
"As previously noted, the drilling of this well is transformational to Advance Energy, representing a material value catalyst for the Company and our shareholders, and we are excited to report today's operational milestone. We look forward to providing further updates as the drilling program progresses."
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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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.
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