Advance Energy PLC (AIM:ADV) chief executive Leslie Peterkin said he remains confident the company’s East Timor well will be both a “geological and economic success” as the group updated on progress.
The crew of the Valaris JU-107 rig has bored a surface hole on Buffalo 10, and is ‘drilling ahead’ on a 17.5-inch hole section at a depth of around 120 metres.
Investors were told not to expect crude from the first two sections of the well.
The plan is to test for the presence of commercial quantities of high-quality light oil that is expected to lead to the early re-development of the Buffalo field. The wider aim is to convert a contingent resource to proved and probable (2P) reserves of oil.
The programme, which will be overseen by Buffalo field operator Carnarvon Petroleum, will take 35 days and go down to 3,500 metres. If oil is found in the quantities expected it is likely that Buffalo-10 will then be suspended for re-entry as a production well.
Advance Energy specialises in taking non-operated stakes in oil fields. Buffalo is a formerly closed-in well, Carnarvon deems as having huge untapped potential.
CEO Peterkin said: "We are delighted to hear this progress from the operator as we hit another operational milestone.
“The joint venture is working hard to conclude the drilling program in the coming weeks and remains confident that the Buffalo-10 well will be a geological and economic success.”