Advance Energy Share Discussion Threads

[cal57] 18/12/2020 20:40

They would have to issue a massive amount of new shares just to raise the minimum $10m.I should imagine it would be better to raise through shares and debt.Ideally at a higher share price than the closing price.If I can remember rightly they had previously talked about 2 deals .So far they have been spot on so I trust that the board will act in the best interest of the shareholders.

[fund1] 18/12/2020 11:47

Yes they will be busy now doing the rounds and getting the right price set for the fund raising.

[therealtonythetiger] 18/12/2020 09:32

End of Feb early March..
I cant see much happening til then but you never know they may have another deal on the go..

[fund1] 17/12/2020 22:44

Forget that just read until an admission document.

[fund1] 17/12/2020 22:43

Wonder how long we will be suspended for. Will it be when price is announced or when funds have actually been raised?

[fund1] 17/12/2020 22:39

Yes always a good sign.

[therealtonythetiger] 17/12/2020 22:11

Directors of Advance Energy intend to participate in the Placing

[cal57] 17/12/2020 20:39

Yep agree, hoping for big things from Advance in 2021-2.

[fund1] 17/12/2020 20:30

Not sure but I don't think they would have announced it without being confident and doing there due diligence. That podcast could be right when he said advance is one of his shares for 2021. In the meantime we can dream of some ridiculous price

[cal57] 17/12/2020 19:19

Wonder what the placing price will be and how quickly Advance will be able to raise US$10m +

[therealtonythetiger] 17/12/2020 17:07

Yes mate dont worry about it.

[fund1] 17/12/2020 16:50

I have never had a share suspended before is it normal to show the value as zero on your online account.

[fund1] 17/12/2020 11:44

Well so far he as been true to his word. That's all you can ask

[therealtonythetiger] 17/12/2020 10:44

£1... (default answer when anybody asks you what the share price will be in 3 months time)

[fund1] 17/12/2020 08:26

No Idea but significantly higher I should imagine. The Directors of Advance Energy consider the Transaction to represent a transformational, value enhancing transaction for shareholders, which is fully aligned with Advance Energy's growth strategy.

[fund1] 17/12/2020 08:22

So it begins. Nice

[cashandcard] 17/12/2020 08:21

Any thoughts where you think this may open back up folks?Cash

[cashandcard] 17/12/2020 08:05

Interesting, I would have preferred actual production over an appraisal project. I'm going to think about this.Cash

[therealtonythetiger] 17/12/2020 07:23

RNS ...

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 announce that the Company and its wholly owned subsidiary, Advance Energy TL Limited ("AETL") have entered into a subscription agreement (the "Buffalo Subscription Agreement") with Timor-Leste Petroleum Pty Ltd ("CVNA") (a subsidiary of Carnarvon Petroleum Limited (ASX:CVN, "Carnarvon")) pursuant to which AETL will subscribe for equity such that AETL holds up to 50% of the total equity interest in Carnarvon Petroleum Timor, Unipessoal Lda (a subsidiary of CVNA incorporated in Timor-Leste, "JVCo") for a consideration of up to US$20 million (the "Transaction"). JVCo has a 100% working interest in the production sharing contract for offshore petroleum operations in Timor-Leste, Contract Area TL-SO-T 19-14 originally between Autoridade Nacional do Petroleo e Minerais Timor-Leste on behalf of the Ministry of Petroleum and Mineral Resources and JVCo (the "PSC"), which includes the Buffalo Oil Field ("Buffalo Oil Field").



The Directors of Advance Energy consider the Transaction to represent a transformational, value enhancing transaction for shareholders, which is fully aligned with Advance Energy's growth strategy. The Buffalo Oil Field is a proven oil field that produced 21 MMbbls over 5 years in the early 2000s. AETL's subscription in JVCo will be applied to funding the drilling of the B-10 appraisal well and certain PSC related costs (described below), to appraise the independently certified 2C (probable contingent) oil resource of 31.1 MMbbls, with the intention for drilling to take place in late 2021.



To fund the Transaction, Advance Energy will be seeking to carry out a placing to new and existing investors ("Placing") to raise sufficient funds to finance AETL's subscription in JVCo and required working capital. As such, the Transaction is conditional, inter alia, on a successful fundraising. Directors of Advance Energy intend to participate in the Placing.



The parties have also agreed that, provided Advance Energy raises at least US$10 million for subscription funds, a sliding scale of equity in JVCo (as set out below) will be issued to AETL, and CVNA may elect to fund (or introduce third parties to fund) the additional balance required for the B-10 appraisal well. If CVNA makes this election, AETL will have a further option to participate and provide such funding in exchange for additional equity up to 50% of the JVCo.



Assuming drilling success at the B-10 appraisal well and, among other things, the parties agreeing a field development plan, Advance Energy has agreed to source and arrange development financing up to first oil, which is expected to be primarily in the form of debt.



The Transaction is classified as a reverse takeover pursuant to the AIM Rules for Companies and accordingly the Company's shares will be temporarily suspended from trading on AIM as of 07:30 a.m. today. The Company's ordinary shares will remain suspended from trading on AIM until such time as either an Admission Document setting out details of the proposed Transaction is published or confirmation is given that the Transaction is not proceeding. Further, completion of the Transaction is subject to approval by Advance Energy's shareholders at a general meeting to be convened in due course ("General Meeting"). The Admission Document, which will include a notice of General Meeting, is expected to be issued in due course.



Key Highlights



· Earning up to a 50% beneficial interest in a proven oil field with material resources

o Independently certified 2C oil resource of 31.1 MMbbls

· Partnering with established Operator for low execution risk

o Carnarvon Petroleum (ASX:CVN) group companies operate the Buffalo Oil Field

o Highly capable operator with experienced in-house E&P team

· Exposure to material upside potential in 2021 with limited risk

o Appraisal well is intended to convert the 2C resources to 2P (proved and probable) reserves following re-certification

o Previous operators (BHP and Nexen Petroleum Australia Pty. Ltd) produced 21 MMbbls from the Buffalo Oil Field over five years with no material decrease in reservoir pressure

Leslie Peterkin, Chief Executive Officer, commented:

"We are delighted to have agreed this potentially transformative transaction with Carnarvon to acquire up to a 50% indirect interest in the Buffalo Oil Field. This asset reflects our stated strategy perfectly. The teams at Advance Energy and Carnarvon believe the Buffalo Oil Field holds material unrealised value that can be unlocked through re-development. The Advance Energy team will now aim to further build on our ambitious growth strategy. Members of the Advance Energy team intend to demonstrate their confidence in the Transaction by aligning with shareholders through participation in the Placing. We look forward to updating the market in due course."

[fund1] 10/12/2020 12:18

Sounds not great and can't remember the time he talks about it but it's in here somewhere.https://youtu.be/Vc6yyrui-NA

[therealtonythetiger] 10/12/2020 09:47

What poddy mate

[fund1] 10/12/2020 08:24

Was listening to a podcast last night they had to pick 5 shares for 2021 ADV was on there