Advance Energy Plc shares restart trading as Buffalo deal moves forward alongside
It is executing a reverse takeover, share placing and a share consolidation as it picks up a 50% stake in the Buffalo oil field in Timor-Leste.
Shares in () resumed trading today, ahead of a reverse takeover to acquire an interest in the Buffalo oil field in Timor-Leste, southeast Asia.
It was previously suspended in December as the deal was initially announced and today the company notes the publishing of an admission document for the enlarged company.
The company is acquiring a 50% interest in Carnarvon Petroleum Timor Unipessoal Lda, a subsidiary of ASX-listed Carnarvon Petroleum, which owns 100% of the Buffalo field.
At the same time, it is raising £21.84mln of new capital in a share placing.
Buffalo is host to 34.3mln barrels of contingent oil resources and under previous operators (BHP and Nexen Petroleum) it produced some 21mln barrels over a five-year period.
Subsequent to the acquisition a fresh appraisal programme is planned, with the B-10 well slated for drilling in the second half of 2021.
Advance highlighted that Buffalo has the potential to deliver production at a rate of around 40,000 barrels per day within a three-year period, subject to the B-10 results.
The £21.84mln placing will fund the B-10 programme along with other costs related to the field.
Advance is issuing some 840.1mln new shares to investors at a price of 2.6p per share.
“We’re delighted to have completed this placing, and we thank our new and existing shareholders for their belief in the company and the investment opportunity we presented to them,” said Leslie Peterkin, chief executive.
“The fundraise enables the completion of the transformative transaction with Carnarvon Petroleum and we can now look forward with confidence to the exciting B-10 appraisal well later this year which represents a material value catalyst for Advance Energy and its shareholders.”
Peterkin added: “We’re delighted to have completed this placing, and we thank our new and existing shareholders for their belief in the company and the investment opportunity we presented to them.
“The fundraise enables the completion of the transformative transaction with Carnarvon Petroleum and we can now look forward with confidence to the exciting B-10 appraisal well later this year which represents a material value catalyst for Advance Energy and its shareholders.”
The company is also proposing a 10-for-1 share consolidation.
Read More: Advance Energy Plc shares restart trading as Buffalo deal moves forward alongside