LONDON (ShareCast) - (Sharecast News) - Advance Energy updated the market on the Buffalo oil field on Monday, reporting that Carnarvon Petroleum has awarded a drilling management services contract to Petrofac for the B-10 appraisal well, which was expected to be drilled in the second half of 2021, subject to funding, rig availability and government approvals.
The AIM-traded firm entered into a subscription agreement with Timor-Leste Petroleum, a subsidiary of Carnarvon, to obtain up to a 50% equity interest in Carnarvon Petroleum Timor in December.

Carnarvon Petroleum Timor holds a 100% working interest in the Buffalo oil field, with the subscription conditional on raising the necessary funding.

It said the company was currently making drilling preparations for the B-10 appraisal well, which was designed to drill the crest of the structure, with the objectives of re-certifying resources into reserves and finalising the development plan for this proven oil field.

Following a tender process, Carnarvon made the decision to award the drilling management services contract to Petrofac, which would include completion of detailed well design, procurement of long lead items and contracting the drilling rig and associated services, including a shore-based location.

Under the subscription agreement, Advance Energy provided approval for the contract award.

"We are pleased to note the award of this contract to Petrofac given their established reputation as a leading services provider," said chief executive officer Leslie Peterkin.

"Their skills and expertise will complement Carnarvon's experience, as well as our own to ensure the delivery of a safe and cost-effective well.

"The B-10 well is a material catalyst for the joint venture which in the success case will enable us to finalise the development plan and take FID shortly thereafter, with a view to first oil being achieved in 2023."

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