- Title:
Corporate Update - Time:
07:00:05 - Date:
31 Jul 2020 - Category:
Corporate updates - ID:
6139U
31 July 2020
Advance Energy plc
("Advance Energy" or the "Company")
Corporate Update
Advance Energy plc (AIM:ADV), the energy company seeking growth through acquisition or farm-in to non-operated interests in discovered upstream projects, provides the following corporate update.
Further to the relaunch of the Company and completion of its strategic review in March 2020, the Company continues to progress a number of opportunities. Whilst it is yet to agree commercial terms in respect of such opportunities, the Board is encouraged by its initial due diligence and the multiple funding discussions it has initiated. This is in line with its focus on leveraging the deep industry experience and network of the management team to identify and unlock hidden value in discovered upstream projects that meet with required acquisition or farm-in criteria, and build a portfolio of non-operated positions generating at least 20 thousand barrels of oil equivalent per day net production by 2025.
The Company has not been impacted negatively by the ongoing COVID-19 pandemic and challenging market backdrop, and believes it will ultimately benefit as the industry recalibrates to the current environment resulting in a compelling deal-flow pipeline going forward. The Company's focus is on discovered assets with existing production or near-term development upside, partnering with credible operators in jurisdictions in which the management team have deep knowledge, an existing network and understanding of risk mitigation.
Advance Energy's differentiated business model is well tailored to the current climate in terms of maintaining low overheads by ensuring largely success-based remuneration, seeking non-operated positions enabling cost-effective exposure to suitable projects with limited geographical constraints, and utilising the commercial and technical capabilities of its management team to progress opportunities internally.
Commenting on the update, CEO Leslie Peterkin said:
"The industry has changed significantly since we re-launched the Company earlier this year and we believe that this will enhance our ability to deliver our differentiated strategy. There will undoubtedly be more opportunities coming to market that will tick all our boxes in terms of providing immediate or near-term line of sight to cash flow and upside potential. We believe our strategy is perfectly suited to the current climate in terms of being a small but well formed company, with a low-cost structure and wide-ranging industry experience capable of opening doors to credible operators and adding value to underperforming or non-core projects by leveraging our technical and commercial know-how. We acknowledge that the uncertainty caused by the ongoing pandemic and subsequent commodity price volatility has created challenges in terms of transacting, however we are encouraged by the ongoing conversations we are having and our concurrent discussions regarding how we would fund any such transactions. We hope to provide a more detailed update in due course as these discussions progress further."
Advance Energy plc
Leslie Peterkin (CEO) / Stephen West (CFO) +44 (0)1624 681 250
Buchanan (Public Relations)
Ben Romney / Kelsey Traynor +44 (0)20 7466 5000
Roland Cornish / James Biddle +44 (0) 20 7628 3396
Colin Rowbury +44 (0)20 7399 9427
Christian Dennis +44 (0)20 3411 1881
For further information, please visit www.advanceplc.com and @advanceplc on Twitter
To register for Advance's email alerts, please complete the following form: https://www.advanceplc.com/media-centre/news/#alerts
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 ("MAR").
Corporate Update07:00:0531 Jul 2020Corporate updates6139U