The Company was originally incorporated in September 2006 and announced its launch as Advance Energy in February 2020 with the acquisition of a 50% interest in the Buffalo Oil Field in East Timor, operated by Carnarvon Petroleum.
Following the completion of the Buffalo-10 well, the Board has refocused the strategy for the Company, which is to create a self-funding oil & gas production company to take advantage of growth opportunities presented as industry players rationalise their portfolios to manage the transition to net-zero emissions. The Company’s main focus is on growth through acquisition or farm-in to non-operated interests in cash-generative upstream projects where there is an opportunity to add significant value in the short to medium term.
We seek to take non-operated interests either by acquisition or farm-in, and prefer joint ventures with only two parties and the ability to influence value-adding outcomes through constructive engagement with our operators.
Our model means that we only work with established operators eliminating many of the execution risks present for typical early stage, high growth companies. We can focus on what really adds value rather than the day-to-day operations, leaving that to the operator.
We have no need to build a large and complex organisation keeping our overheads low and preserving value for our shareholders.
The additional advantage of being a non-operator is that we can readily acquire an interest in an asset in a new jurisdiction, given we have no need for local infrastructure, plus we have no need to establish ‘core areas’. Equally, we have no need to consider building an asset portfolio in any country.
We have no need to be geographically constrained. We screen projects purely on value potential rather than specific play-type or basin. This provides us with a larger opportunity set than many traditional upstream companies.
We target only discovered resources in good fiscal regimes, and projects with major value inflection points within a short timeframe. Generally less than 3-5 years out with clear line of sight from the onset.
No high-risk exploration with long time lines to delivery of full value.
We prefer one-on-one negotiation where we can tailor our approach and will not participate in bidding rounds or other openly competitive situations where value can be bid away upfront.
Our focus on near term value creation means it is easier to control risks – limited exposure to long term commodity price trends, and no potential stranded value from the world’s changing energy mix or climate change initiatives.
The Advance Energy approach – to support and enhance the performance of upstream operators to deliver exceptional project outcomes and exceptional returns!