Advance Energy Share Discussion Threads

[therealtonythetiger] 15/2/2021 07:43

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 an update on the Buffalo oil field. Carnarvon Petroleum Limited (ASX:CVN, "Carnarvon"), has announced today the award of a drilling management services contract to Petrofac Limited (LSE: PFC, "Petrofac") for the B-10 appraisal well, which is expected to be drilled in H2 2021, subject to funding, rig availability and government approvals.



On 17 December 2020, the Company announced it had entered into a subscription agreement with Timor-Leste Petroleum Pty Ltd (a subsidiary of Carnarvon) to obtain up to a 50% equity interest in Carnarvon Petroleum Timor, Unipessoal Lda ("JVco"), its subsidiary which holds a 100% working interest in the Buffalo oil field (the "Subscription Agreement"), conditional, inter alia, on raising the necessary funding. JVco is presently making drilling preparations for the B-10 appraisal well, which is designed to drill the crest of the structure with the objectives of re-certifying resources into reserves and finalising the development plan for this proven oil field.



Following a tender process, Carnarvon made the decision to award the drilling management services contract to Petrofac, which will include completion of detailed well design, procurement of long lead items and contracting the drilling rig and associated services, including a shore based location. Pursuant to the Subscription Agreement, Advance Energy provided approval for the contract award. Drilling of the B-10 appraisal well is anticipated to occur in H2 2021.



Leslie Peterkin, CEO at Advance Energy commented: "We are pleased to note the award of this contract to Petrofac given their established reputation as a leading services provider. Their skills and expertise will complement Carnarvon's experience, as well as our own to ensure the delivery of a safe and cost-effective well. The B-10 well is a material catalyst for the joint venture which in the success case will enable us to finalise the development plan and take FID shortly thereafter, with a view to first oil being achieved in 2023. We look forward to providing further details on this transformative transaction with Carnarvon as it progresses."

[therealtonythetiger] 12/2/2021 11:47

Advance Energy plc (AIM:ADV), the energy company seeking growth through acquisition or farm-in to non-operated interests in discovered upstream projects, announces it has today issued warrants ("Warrants") to subscribe for 545,455 new ordinary shares in the Company.

The Warrants have been issued to a third party who assisted with the Company's placing of new ordinary shares in November 2020 and represent agreed compensation. The Warrants have an exercise price of 0.22 pence and an expiry date of 9 December 2023.

[sweet karolina2] 26/1/2021 23:39

So burning $100k a month doing nothing. Negative balance sheet cleared with placing but with the costs of the raise probably back to negative $300k by now. Good to see they still believe this bombed out dog with no fixed assets and negative net current assets can raise £10m+ to take part in the B10 JV. The clock is ticking loudly and they still have not got the readmission prospectus out to potential investors.

[therealtonythetiger] 13/1/2021 18:43

Fundy
Yeah end of Feb to end of March latest.. hopefully... more patience required

"Each Party must use all reasonable efforts to satisfy the conditions precedent by 28 February 2021. Either party has the right to terminate the Buffalo Subscription Agreement if, at any time after 28 February 2021, it becomes apparent, acting reasonably and after consultation with the other party, the conditions to completion are unlikely to be satisfied by 31 March 2021."

[sweet karolina2] 13/1/2021 17:22

So Novum have either been binned or have said your are joking find someone else. Either way it is a sure sign that the brokers have not exactly been overwhelmed by real investors wanting a piece of the B10 deal action.

[fund1] 13/1/2021 12:18

Yes not long to wait now before everything is laid out

[therealtonythetiger] 13/1/2021 08:40

RNS

13 January 2021



Advance Energy plc

("Advance Energy" or the "Company")



Appointment of Joint Broker



Advance Energy plc (AIM:ADV), the energy company seeking growth through acquisition or farm-in to non-operated interests in discovered upstream projects, announces the appointment of Tennyson Securities as joint broker to the Company.

[therealtonythetiger] 11/1/2021 19:28

Yeah he sounded very upbeat and had a little dig at the previous mob which was quite funny..

[fund1] 11/1/2021 18:34

Sounds very positive safe mid to long term hold this.

[therealtonythetiger] 11/1/2021 18:10

Advance Energy target discovered assets, non-operated positions and two party joint ventures

[therealtonythetiger] 22/12/2020 19:03

copied from LSE

Below is an article from May 2018 in the Financial Review (an Australian media company):

Oil and gas junior Carnarvon Petroleum's decision to push ahead with redevelopment of a former BHP oil field is set to deliver a timely tax boost to Timor-Leste as it grapples with Australia over bigger prizes in the waters between the two countries.

Carnarvon announced on Thursday that redevelopment of the Buffalo oil field would commence with the drilling of the first production well.

While the focus of the signing of a maritime boundary treaty between Timor-Leste and Australia in March has been the share of spoils from development of the huge reserves in the Greater Sunrise oil fields, Carnarvon's Buffalo redevelopment shifted from Australian to Timor-Leste waters.

East Timor has welcomed moves to redevelop the Buffalo oil field.
Based on figures released by Carnarvon, Timor-Leste is set to receive a $US1 billion revenue boost from the redevelopment, which would coincide with the country's income stream from the Bayu-Undan field drying up and amid uncertainty about the timing of any project at Greater Sunrise.

Carnarvon said independent costs analysis showed the field could be redeveloped with three production wells for less than $US150 million and operated at an cost of between $US80 million and $US100 million over five years.

Working on a contingent resource of 31 million barrels and current Brent oil prices of around $US74 a barrel, Carnarvon expects the field to generate about $US2.3 billion in revenue.

Low-risk project
Chief executive Adrian Cook said the project was low-cost with total expenditure representing $US18-$US21 a barrel and the project funding well within Carnarvon's capabilities.

Perth-based Carnarvon has set-up an office in Dili and is working with authorities on the terms of a production-sharing contract after realising in advance the project was likely to end up in Timor-Leste waters under the maritime boundary treaty.

Mr Cook said an overarching principle in the agreement between Timor-Leste and Australia was that affected companies were held to fiscal equivalence in terms of taxation.

"We have found the [Timor-Leste] government really positive in engaging with us," he said.

"It has been in the press that their revenue streams from Bayu-Undan are starting to wind down and no one really has a line of sight on their next tax revenue stream from oil and gas which would come from Sunrise.

"The fill-in between now and then is our project that is the most logical contribution to the Timor-Leste community from a tax revenue perspective. They have been clear in talking that through with us and why getting that tax revenue as soon as possible is a benefit to them."

Mr Cook said the project was low-risk and represented $US750 million in free cash flow back to Carnarvon, which is also in the process of drilling wells

[sweet karolina2] 22/12/2020 17:18

Poor mugpunter tony! Unable to come up with any coherent analysis himself all he does is post and repost other people's posts.

[therealtonythetiger] 22/12/2020 13:53

copied from LSE

Below is an article from May 2018 in the Financial Review (an Australian media company):

Oil and gas junior Carnarvon Petroleum's decision to push ahead with redevelopment of a former BHP oil field is set to deliver a timely tax boost to Timor-Leste as it grapples with Australia over bigger prizes in the waters between the two countries.

Carnarvon announced on Thursday that redevelopment of the Buffalo oil field would commence with the drilling of the first production well.

While the focus of the signing of a maritime boundary treaty between Timor-Leste and Australia in March has been the share of spoils from development of the huge reserves in the Greater Sunrise oil fields, Carnarvon's Buffalo redevelopment shifted from Australian to Timor-Leste waters.

East Timor has welcomed moves to redevelop the Buffalo oil field.
Based on figures released by Carnarvon, Timor-Leste is set to receive a $US1 billion revenue boost from the redevelopment, which would coincide with the country's income stream from the Bayu-Undan field drying up and amid uncertainty about the timing of any project at Greater Sunrise.

Carnarvon said independent costs analysis showed the field could be redeveloped with three production wells for less than $US150 million and operated at an cost of between $US80 million and $US100 million over five years.

Working on a contingent resource of 31 million barrels and current Brent oil prices of around $US74 a barrel, Carnarvon expects the field to generate about $US2.3 billion in revenue.

Low-risk project
Chief executive Adrian Cook said the project was low-cost with total expenditure representing $US18-$US21 a barrel and the project funding well within Carnarvon's capabilities.

Perth-based Carnarvon has set-up an office in Dili and is working with authorities on the terms of a production-sharing contract after realising in advance the project was likely to end up in Timor-Leste waters under the maritime boundary treaty.

Mr Cook said an overarching principle in the agreement between Timor-Leste and Australia was that affected companies were held to fiscal equivalence in terms of taxation.

"We have found the [Timor-Leste] government really positive in engaging with us," he said.

"It has been in the press that their revenue streams from Bayu-Undan are starting to wind down and no one really has a line of sight on their next tax revenue stream from oil and gas which would come from Sunrise.

"The fill-in between now and then is our project that is the most logical contribution to the Timor-Leste community from a tax revenue perspective. They have been clear in talking that through with us and why getting that tax revenue as soon as possible is a benefit to them."

Mr Cook said the project was low-risk and represented $US750 million in free cash flow back to Carnarvon, which is also in the process of drilling wells

[sweet karolina2] 22/12/2020 13:44

"and the project funding well within Carnarvon's capabilities."

And ever since he has been trying to find someone to farm out the majority of the costs and risk to. You would expect other ASX oilers to jump at the chance, but no takers. The only people interested are the desperate to do a deal new BoD of cashless AIM uber dog ADV. Tells us all we need to know about the rest of that announcement.

[therealtonythetiger] 22/12/2020 12:45

copied from LSE

Below is an article from May 2018 in the Financial Review (an Australian media company):

Oil and gas junior Carnarvon Petroleum's decision to push ahead with redevelopment of a former BHP oil field is set to deliver a timely tax boost to Timor-Leste as it grapples with Australia over bigger prizes in the waters between the two countries.

Carnarvon announced on Thursday that redevelopment of the Buffalo oil field would commence with the drilling of the first production well.

While the focus of the signing of a maritime boundary treaty between Timor-Leste and Australia in March has been the share of spoils from development of the huge reserves in the Greater Sunrise oil fields, Carnarvon's Buffalo redevelopment shifted from Australian to Timor-Leste waters.

East Timor has welcomed moves to redevelop the Buffalo oil field.
Based on figures released by Carnarvon, Timor-Leste is set to receive a $US1 billion revenue boost from the redevelopment, which would coincide with the country's income stream from the Bayu-Undan field drying up and amid uncertainty about the timing of any project at Greater Sunrise.

Carnarvon said independent costs analysis showed the field could be redeveloped with three production wells for less than $US150 million and operated at an cost of between $US80 million and $US100 million over five years.

Working on a contingent resource of 31 million barrels and current Brent oil prices of around $US74 a barrel, Carnarvon expects the field to generate about $US2.3 billion in revenue.

Low-risk project
Chief executive Adrian Cook said the project was low-cost with total expenditure representing $US18-$US21 a barrel and the project funding well within Carnarvon's capabilities.

Perth-based Carnarvon has set-up an office in Dili and is working with authorities on the terms of a production-sharing contract after realising in advance the project was likely to end up in Timor-Leste waters under the maritime boundary treaty.

Mr Cook said an overarching principle in the agreement between Timor-Leste and Australia was that affected companies were held to fiscal equivalence in terms of taxation.

"We have found the [Timor-Leste] government really positive in engaging with us," he said.

"It has been in the press that their revenue streams from Bayu-Undan are starting to wind down and no one really has a line of sight on their next tax revenue stream from oil and gas which would come from Sunrise.

"The fill-in between now and then is our project that is the most logical contribution to the Timor-Leste community from a tax revenue perspective. They have been clear in talking that through with us and why getting that tax revenue as soon as possible is a benefit to them."

Mr Cook said the project was low-risk and represented $US750 million in free cash flow back to Carnarvon, which is also in the process of drilling wells

[sweet karolina2] 22/12/2020 08:13

Fund,

I have explained why in my opinion, if the placing happens at all, it will be at around 0.05p. So please present a counter opinion backed up by fact, analysis and commercial logic.

Also please find the post where I said that a deal would not be done. I never did. What I said was the only project that ADV would get a deal on is one that nobody else wants. It is quite clear that CVN have been trying to farm out B10 for a while and that they had no other offers that would take the deal on offer. I have analysed the deal from both party's perspectives. It is a good deal for CVN, it is not such a good deal for ADV and certainly not for anyone who buys into the placing. Again in my opinion based on fact, analysis and commercial logic. If you disagree that is fine but state the basis of your counter opinion. Are you going to contact the brokers so you can take part in the placing, if you are so sure I am wrong?

It is rather sad that you don't want to use this board for what it is here for - ie for people to share knowledge and analysis in order to improve understanding and thereby make better investing decisions. The best way to do that is for people with different opinions to discuss them rationally based on facts, analysis and commercial logic.

I have followed this dog from when Dave Whitby first broke AIM rules by ramping CEB shares up to 1.2p only to do the ADL placing at 0.2p. There has been a 50 to 1 consolidation since then, so people who bought into Dave's ramp paid 60p in today's prices so have lost about 99.6% of their money. Clearly there are some lessons to learn from that and all the subsequent disasters. Those who fail to learn from the mistakes of the past are doomed to repeat them. Don't worry I will still be here to help those who want to learn learn. Those who just want to engage in personal attacks deserve what happens and all the scorn that goes with it.

[fund1] 21/12/2020 22:00

Whatever the price will be set at there nothing anyone can do now. What will be will be but I am convinced it will be higher than 0.25 so a certain poster that keeps posting will eventually fade into the distance. The same poster who said they would not pull of a deal. Because he is blinded with hate.

[therealtonythetiger] 21/12/2020 20:00

An existing oil field in the Timor Sea prime for re-development

Location
▪ The Buffalo oil field is offshore Timor-Leste in the Bonaparte Basin
▪ Near several other oil and gas fields

Production Sharing Contract
▪ The project is administrated under a production sharing contract: TL-SOT 19-14
▪ Buffalo is under a special regime where net taxes are similar to Australia

Project equity
▪ Prior to this transaction, Carnarvon owns the project 100%
▪ Following the transaction Carnarvon will own between 50% and 75%

Operator
▪ Carnarvon Petroleum is the operator and will continue to operate

Discovered oil
▪ The field has a number of well penetrations, providing a great degree of
well control with re-processed seismic data
▪ There is oil remaining, particularly in the un-drilled attic of the reservoir

Certified resources
▪ 2C Contingent Resource of 31.1 million barrels of oil
▪ Certified by RISC on 26 August 2017

Robust economics
▪ Low-cost development
▪ Rapid pay back

Quality product
▪ High quality 53 degree API oil, free of contaminants such as Sulphur
▪ Several crude buyers in the region have expressed strong interest

[therealtonythetiger] 21/12/2020 19:56

About Advance Energy
Advance was originally incorporated in September 2006 and in February 2020 announced Board changes and name change to Advance Energy plc.
Whilst it has interests in several licences in the UK, the Company’s main focus is now on growth through acquisition or farm-in to non-operated interests in upstream projects where there is an opportunity to add significant value in the short to medium term.
Advance look to identify assets where they can add value, such as via funding, and maximise their value using their unique insights from original technical work, commercial acumen or advantaged relationships.
Advance’s business model is to seek non-operated interests either by acquisition or farm-in.
The Advance Energy approach is to support and enhance the performance of upstream operators to deliver exceptional project outcomes and exceptional returns.

[therealtonythetiger] 21/12/2020 19:56

The work to drill Buffalo-10 is underway..

Completed
▪ Environmental approvals for drilling
▪ Carnarvon Drilling Management System
▪ Carnarvon Safety Management System
▪ Selection of Buffalo-10 well location
▪ Establishment of Dili office in Timor-Leste, local presence and Timor-Leste systems &procedures

Underway
▪ Tendering and selection of drilling management contractor
▪ Services contractors prequalification

1H 2021
▪ Finalise detailed well design and cost
▪ Contract drilling rig and services
▪ Procurement of long lead items

2H 2021
▪ Drill Buffalo-10

2022
▪ Development - Front End Engineering & Design
▪ Development approvals
▪ Final Investment Decision

2023
▪ Development execution
▪ First oil

[sweet karolina2] 21/12/2020 18:55

"Whilst it has interests in several licences in the UK"

Completely untrue. The Badger licence was lost over a year ago. The only interest left is the tiny interest in the zombie Coulter project. Not good to see Carnarvon deliberately mislead investors over things like this, but as they say if you lay down with dogs like ADV then you get up with fleas.

[therealtonythetiger] 21/12/2020 16:37

The work to drill Buffalo-10 is underway..

Completed
▪ Environmental approvals for drilling
▪ Carnarvon Drilling Management System
▪ Carnarvon Safety Management System
▪ Selection of Buffalo-10 well location
▪ Establishment of Dili office in Timor-Leste, local presence and Timor-Leste systems &procedures

Underway
▪ Tendering and selection of drilling management contractor
▪ Services contractors prequalification

1H 2021
▪ Finalise detailed well design and cost
▪ Contract drilling rig and services
▪ Procurement of long lead items

2H 2021
▪ Drill Buffalo-10

2022
▪ Development - Front End Engineering & Design
▪ Development approvals
▪ Final Investment Decision

2023
▪ Development execution
▪ First oil

[therealtonythetiger] 21/12/2020 16:33

About Advance Energy
Advance was originally incorporated in September 2006 and in February 2020 announced Board changes and name change to Advance Energy plc.
Whilst it has interests in several licences in the UK, the Company’s main focus is now on growth through acquisition or farm-in to non-operated interests in upstream projects where there is an opportunity to add significant value in the short to medium term.
Advance look to identify assets where they can add value, such as via funding, and maximise their value using their unique insights from original technical work, commercial acumen or advantaged relationships.
Advance’s business model is to seek non-operated interests either by acquisition or farm-in.
The Advance Energy approach is to support and enhance the performance of upstream operators to deliver exceptional project outcomes and exceptional returns.