PERTH, Australia – Advance Energyhas completed its acquisition of a 50% stake in Carnarvon Petroleum Timor.
The latter holds a 100% interest in the Buffalo PSC, offshore Timor-Leste.
Under the terms of a transaction agreed to last December with Carnarvon Petroleum, Advance Energy will fund the drilling of the Buffalo-10 well, due to spud later this year, up to $20 million on a free-carry basis.
The partners then plan to seek development funding from third-party lenders with any further funding needs provided by Advance as an interest-free loan.
Carnarvon managing director and CEO Adrian Cook said: “The joint venture will move to develop the field quickly to take advantage of the strengthening oil markets.
“This will be achieved by suspending the well as a future production well and commencing early development studies during 2021. The Buffalo field has the advantage of being in shallow water which enables a low cost project.”