LONDON: Advance Energy plc announced the completion of its acquisition of a 50 percent equity interest in Carnarvon Petroleum Timor Unipessoal Lda, the holder of a 100 percent working interest in, and the contractor of, the Buffalo PSC, offshore Timor-Leste.
The acquisition constituted a reverse takeover of the Company, pursuant to the AIM Market Rules.
Advance Energy is also pleased to announce that admission of its Enlarged Share Capital to trading on the AIM Market of the London Stock Exchange will take place at 8:00a.m. this morning.
The Company’s Admission follows a successful placing, raising gross proceeds of £21,842,600 via the issue of 840,100,000 Ordinary Shares at a price of 2.6 pence per share.
The net proceeds of the Placing will be utilised to fund the subscription by Advance Energy TL Limited (AETL) for equity in Carnarvon Petroleum Timor, which will be applied by Carnarvon Petroleum Timor to fund the drilling of the B-10 Appraisal Well and certain Buffalo PSC related costs, and for the Company’s general working capital requirements.
On Admission, completion of the Buffalo Subscription Agreement becomes effective in escrow with the Escrow Agent being required to date the Escrow Documents and so completing the Acquisition.
Following receipt by the Escrow Agent of copies of bank transfers showing that AETL has transferred or procured the transfer of the subscription amount of US$20 million payable under the Buffalo Subscription Agreement to the bank account of Carnarvon Petroleum Timor, the Escrow Agent will release the Escrow Documents to the various parties. This is expected to happen on or around 21 April 2021.
As announced on 16 April 2021 and as approved by shareholders, the Company has undertaken a Capital Consolidation, whereby every ten Existing Ordinary Shares were consolidated into one New Ordinary Share.