Advance will acquire an interest of up to 50% in the project through funding drilling of the Buffalo-10 well up to $20 million on a free-carry basis.
In addition, the partners will seek development funding from third-party lenders.
Advance’s strategy is said to be to identify and deliver value in discovered assets through a technical and commercial approach as non-operating partners.
Carnarvon will remain as operator of the redevelopment and is currently working on tenders for a drilling management services specialist for the Buffalo-10 well, with a view to starting drilling operations in late 2021, pending identification of a suitable rig, long-lead item orders, and regulatory approvals.
In May 2016, the company was awarded the surrounding WA-523-P permit for an initial six-year term. BHP discovered Buffalo in 1996 and developed the field via four wells drilled from a small, unmanned wellhead platform in 25 m (82 ft) water depth, tied back to an FPSO.
Production finished in November 2004, having delivered 20.5 MMbbl of light oil (53°API) from the Jurassic-age Elang formation. All facilities and wells were decommissioned and removed prior to Carnarvon securing the permit.
Auditors have estimated Buffalo’s remaining 2C resources at 31.1 MMbbl.