Unlocking hidden value is our main objective – to the benefit of our shareholders as well as our joint venture partners, host governments, and broader stakeholders.
Many upstream assets present challenges to existing operators. These difficulties may be technical in nature, mis-alignment in the partnership, sub-optimal commercial arrangements, or simply funding constraints.
One, or a combination, of these issues can present the opportunity for realisation of added value.
We look to identify such assets and maximise their value using our unique insights from original technical work, commercial acumen or advantaged relationships.
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 exert a significant degree of influence.
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 day-to-day operational concerns 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.
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!