Advance Energy anticipates ‘compelling’ deal-flow pipeline

Francesca Morgan
RNS Newswire
07:28, 31st July 2020

Advance Energy (AIM:ADV) FOLLOW said it has not been impacted negatively by the COVID-19 pandemic and believes it will ultimately benefit as the Oil & Gas industry recalibrates to a new operating environment, which is expected to present new deal-flow opportunities.

The AIM-listed energy firm said it continues to progress a number of opportunities with the Board currently appraising several initial due diligence projects with multiple funding discussions already underway.

The group’s aim is to unlock hidden value in discovered upstream projects that meet with required acquisition or farm-in criteria and build a portfolio of non-operated positions generating at least 20 thousand barrels of oil equivalent per day net production by 2025.

Advance will focus on assets with existing production or near-term development upside, partnering with credible operators in jurisdictions ‘in which the management team have deep knowledge, an existing network and understanding of risk mitigation.’

Advance has not been impacted negatively by the COVID-19 pandemic and challenging market backdrop and believes that ‘it will ultimately benefit as the industry recalibrates to the current environment resulting in a compelling deal-flow pipeline going forward.’

Shares in Advance Energy have traded steadily over the past month, closing the market at 0.17p on Thursday afternoon.

ADV price chart

It said its business model is ‘well tailored’ to the current climate in terms of maintaining low overheads, seeking non-operated positions for cost-effective exposure to suitable projects as well as the commercial and technical capabilities of the company's management team.

“The industry has changed significantly since we re-launched the Company earlier this year and we believe that this will enhance our ability to deliver our differentiated strategy,” said CEO of Advance Energy, Leslie Peterkin.

“There will undoubtedly be more opportunities coming to market that will tick all our boxes in terms of providing immediate or near-term line of sight to cash flow and upside potential.

“We believe our strategy is perfectly suited to the current climate in terms of being a small but well formed company, with a low-cost structure and wide-ranging industry experience capable of opening doors to credible operators and adding value to underperforming or non-core projects by leveraging our technical and commercial know-how,” Peterkin added.

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