Advance Energy PLC Buffalo-10 Drilling Update (4666Y)
January 14 2022 - 3:00AM
UK Regulatory
TIDMADV
RNS Number : 4666Y
Advance Energy PLC
14 January 2022
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 1/4 " 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 1/2 " 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 1/4 " hole section having been intersected within the
pre-drill range.
The Elang reservoir is anticipated to be encountered in the 8
1/2 " 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 +44 (0)1624 681
Leslie Peterkin (CEO) / Stephen West (CFO) 250
Strand Hanson Limited (Financial and Nominated
Adviser) +44 (0)20 7409
Rory Murphy / James Harris / James Bellman 3494
Buchanan (Public Relations) +44 (0)20 7466
Ben Romney / Jon Krinks 5000
Tennyson Securities Limited (Joint Broker) +44 (0)20 7186
Peter Krens / Ed Haig-Thomas 9030
Optiva Securities Limited (Joint Broker) +44 (0)20 3411
Christian Dennis 1881
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
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, as amended.
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