Advance Energy PLC (LON:ADV) told investors it completed the acquisition of an interest in the Buffalo PSC, offshore Timor-Leste.
The transaction, which constitutes a reverse takeover, sees the company acquire a 50% stake in the Carnarvon Petroleum Timor vehicle which owns 100% of the Buffalo PSC.
The company noted that shares in the enlarged company will begin trading on the London Stock Exchange at 8:00am today.
Along with the acquisition, the company recently issued new shares in a £21.84mln placing, selling 840.1mln new shares priced at 2.6p each.
A portion of the proceeds is earmarked to fund the drilling of the B-10 appraisal well and other related costs at Buffalo.
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.
Advance Energy previously 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.
In late March, as it raised the funds, chief executive Leslie Peterkin commented: “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.”