Advance Energy signs rig contract for Buffalo-10 well

Upstream oil and gas company Advance Energy has signed a rig contract for its Buffalo-10 well in the Timor Sea.

Advance Energy said on Thursday that it has inked a formal rig contract with Valaris for its VALARIS JU-107 jack-up drilling rig, currently working on the Montara field 300km southwest of the Buffalo field.

The AIM-listed group said the well's operator Carnarvon was expecting to take possession of the drilling rig upon the completion of current drilling operations, planned to occur between mid-October and mid-November.

Chief executive Leslie Peterkin said: "We are pleased to see this contract finalised as it brings us one step closer to the drilling of the Buffalo-10 well which is on track to commence in 8-10 weeks. The Joint Venture has contracted a first-class rig that is arriving hot from its current activities which ought to support the safe and efficient drilling of our well.

"The Buffalo-10 well has the potential to be truly transformative for Advance Energy and its shareholders given the materiality of the resources associated with the Buffalo field. We are growing increasingly excited about securing a clear understanding of the field's long-term potential after an extended period of technical evaluation to get us to this point."

As of 0955 BST, Advance Energy shares were up 2.23% at 3.20p.