ADVANCE ENERGY LIMITED - ASX: AVD

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Description

Exploration and production company Advance Energy Ltd (AVD) has a team with over 30 years' combined experience in acquiring and optimising international oil and gas assets. Focusing on established fields in Texas, USA that are close to existing infrastructure, AVD buys underperforming assets and re-evaluates existing data to identify untapped recoverable reserves.

Martin County

Advance Energy Ltd's Martin County properties are situated in the south-central portion of Martin County approximately 32 kilometres northeast of the city of Midland, Texas in an area where there is easy access and no adverse environmental conditions.

Motherlode Project

Advance Energy Limited's Mother Lode Project is located just north of Midland, Texas, in the north-central portion of the Midland Basin. The project covers 250 square miles of 3-D seismic data located in the northern part of Midland County, the central portion of Martin County, and the southern part of Dawson County. To date, there have been 18 wells drilled on prospects generated from this project and 17 have been completed as producers for a success rate of 94%. Advance Energy Limited is participating in three phases of this project as described below.

Phase I - Homestake and RKE Prospects

The Company has a 92.5% average Working Interest (72% average NRI) in five wells producing from the Strawn Limestone. Since acquisition, Advance has drilled one additional well and abandoned another as well as undertaking a number of workovers. As at December 2008, the wells were producing 115MCFD and 43BOPD (62 BOEPD) net to Advance.

Phase II - Totem and Key East Prospect

Advance Energy Limited acquired a 12.5% working interest in the 640 acre 3-D-defined Totem Prospect and the Key East Project in July 2006. It has since participated in the successful drilling and completion of the Strain 16-2, Strain 16-3, Strain 16-4, Thomas 9-2 and Williams 9-1 wells on these prospects. The twelve wells were producing 32 BOEPD net to Advance in December 2008.

Phase III

The Company has entered into a joint venture agreement to co-develop prospective acreage in Martin and Dawson Counties, Texas. This project, Motherlode Phase III, comprises 75 square miles (48,000 acres) of 3-D seismic data that has been shot and interpreted. The initial interpretation suggested multiple prospects that would target eight prospective deep reservoirs (wells within the 75 square miles have made in excess of 1,000,000 BOE per well) while being able to infill drill the shallow Spraberry Field.

This project will allow Advance to become a major developer of proven reserves in one of the world's most prolific producing basins. Further, by utilizing current technologies, Motherlode Phase III will position Advance to discover new reserves that could substantially increase the reserve estimates for the project.

Development of the two leased prospects, Greene and North Hampton, has currently been deferred in order to take advantage of anticipated falling prices for goods and services. Once the pricing for goods and services reaches equilibrium with current commodity prices the development work will recommence.

Mine For

oil, gas

Location of operation(s)

USA

Address

Suite 4 , 16 Ord Street
WEST PERTH, WA, AUSTRALIA

Phone

(08) 9486 1122

Email

Website

http://www.advanceenergyltd.com.au/

Last Updated

10/08/2011