DOUGLAS, U.K. — Advance Energy says Carnarvon Petroleum Timor has elected not to enter the next period of the TL-SO-T 19-14 production sharing contract in the Timor Sea.
This follows disappointing results from a reentry well on the decommissioned Buffalo Field, designed to prove the presence of undeveloped attic oil in the reservoir.
The Buffalo license should have lapsed today, with Advance Energy becoming an AIM Rule 15 cash on that date.
As such, the company is required to make an acquisition, or acquisitions, constituting a reverse takeover under AIM Rule 14 within six months of today’s date.
Alternatively, it can seek to become an investing company pursuant to AIM Rule 8, which requires the raising of at least £6 million ($7.6 million) and publication of an admission document.
Advance Energy said it was continuing to evaluate other oil and gas opportunities, with an emphasis on materiality and cash flow generation.