The company in April completed its acquisition of a 50% interest in Carnarvon Petroleum Timor, which owns the Buffalo, offshore Timor-Leste, which is presently estimated to host some 34.3mln barrels of contingent oil resources and previously produced around 21mln barrels of crude over five years.
A fresh field appraisal is now planned with the company’s US$20mln investment in Carnarvon providing funds to support the drilling of Buffalo-10.
In today’s statement the company noted that procurement of long lead items is underway and progressing well, and, a tendering process for the drill rig is now nearing completion.
Petrofac is providing drill management services for the programme.
Meanwhile, Carnarvon’s management is advancing the process to secure the necessary government approvals.
"We are delighted to hear progress from Carnarvon to ensure drilling of the Buffalo-10 well is on track for later this year,” said Leslie Peterkin, Advance Energy chief executive.
“The drilling of this well is transformational to Advance Energy, representing a material value catalyst for the company and our shareholders.”
“In the success case, there is potential to deliver a gross production rate of around 40,000 barrels per day by the end of 2023, which in this current pricing environment would deliver exceptionally strong cash flow and compelling rates of return.”
Peterkin added: “We are very excited for what the next six months may bring and will continue to provide updates to the market as we approach the various milestones of drilling activity on the Buffalo-10 well."