Update on Buffalo Oil Field

15 February 2021

Advance Energy plc

("Advance Energy" or the "Company")

Update on Buffalo Oil Field

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."

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