19th Jan 2022 12:30
(Alliance News) - Advance Energy PLC on Wednesday said its Buffalo-10 well hit its primary target with data indicating that hydrocarbons are present.
However, an operator at the well warned of "imaging resolution issues".
Isle of Man-based Advance Energy is an upstream oil and gas firm focused on the southeast Asian nation Timor-Leste.
Buffalo-10's primary target was the Elang reservoir, which was intersected at a depth of around 3,338 metres. This was approximately 80 metres low to prognosis and outside the pre-drill range of expectations.
Advance Energy shares fell 84% to 0.75 pence each in London on Wednesday around midday.
The project operator, called Carnarvon Petroleum, said interpretation of the results show that a 12 metre gross oil column was encountered.
"Wireline logging results will be used to determine the reservoir properties (porosity, net to gross) and to confirm a net oil column," Advance Energy said.
"The information to date indicates that the seismic processing techniques employed on this project have not resolved the underlying seismic velocities or imaging resolution issues that are present in this field," it added.
By Greg Roxburgh; [email protected]
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