The new chief of Advance Energy PLC (AIM:ADV) has spoken about the company’s plans to find new ventures following disappointing results in January.
Larry Bottomley, the new interim chief executive officer (CEO) of Advance Energy, told Proactive about the company's plans for recovery, after previous CEO Leslie Peterkin stepped down following disappointing results at its Buffalo project.
The company lost more than 90% of its value in January following the results, which Peterkin described as ‘both disappointing and hugely surprising'.
“There's always inherent risks in drilling wells, particularly when you're drilling thousands of meters and in this instance, all parties were absolutely shattered when we got to the point and discovered that the well didn't work."
Bottomley, who previously worked with BP, Perenco, and Chariot Oil & Gas, the latter of which exposed him to running a company on AIM, said the company would be targeting its deal flow pipeline with a focus on cashflow and production.
“The two principal drives for me taking on the interim role, firstly was the quality of the board and the support they have given through the business development process.
“But also, it's the quality of assets that currently sit within that pipeline.
“So we're working on and discussing our opportunities that really do have those characteristics of free cash flow and production.
“It's really the quality of the deal flow and the level of maturation of that deal flow, which we will continue to progress.”
Bottomley said the company hoped to deliver one of those opportunities before the end of the year, with cost reductions a focus in the meantime.
“We have aggressively taken a strict capital discipline process in terms of our cash management.
“The reduction in overheads gives us the headroom, and for us most importantly it gives us the time to undertake the activity that we’re working through.”