Business
Termination of Betun-Selo KSO Agreement
Termination of Betun-Selo KSO Agreement.
About this update from Beacon Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 2971B\n Advance Energy PLC\n 07 October 2020\n \n \n \n \n \n \n \n 7 October 2020\n \n \n \n \n \n Advance Energy plc\n \n \n (\"Advance Energy\" or the \"Company\")\n \n \n \n \n \n Termination of Betun-Selo KSO Agreement\n \n \n \n \n \n Advance Energy plc (\n \n \n AIM:ADV\n \n \n ), the energy company seeking growth through acquisition or farm-in to non-operated interests in discovered upstream projects, advises that, further to the operations update provided on 14 September 2020, the Company has now entered into a Deed of Termination and Release with PT Petroenim Betun-Selo and PT Celebes Artha Ventura in relation to the Operating Services & Option Agreement for production on the Betun-Selo KSO field in Sumatra, Indonesia (\"Service Agreement\").\n \n \n \n \n \n In its previous form of Andalas Energy and Power plc, the Company entered into the Service Agreement in June 2019 and subsequently met all its obligations thereunder. The disappointing production performance of the field means that the Company has not realised any incremental production from the Service Agreement beyond April 2020.\n \n \n \n \n \n The Company views the Betun-Selo KSO as non-core and not in line with the Company's forward strategy, and accordingly the Company entered into discussions with PT Petroenim Betun-Selo and PT Celebes Artha Ventura in September 2020, which has culminated in the parties entering into the Deed of Termination and Release.\n \n \n \n \n \n The Company continues to progress a number of new venture opportunities and, whilst it is yet to agree commercial terms in respect of such opportunities, the Board is encouraged by its initial due diligence and the multiple, positive funding discussions it has initiated. This is in line with its focus on leveraging the deep industry experience and network of the management team to identify and unlock hidden value in discovered upstream projects that meet with the Company's required acquisition or farm-in criteria, and build a portfolio of non-operated positions generating at least 20,000 barrels of oil equivalent per day net production by mid-decade, or earlier.\n \n \n \n \n \n The Betun-Selo KSO asset was capitalised on the Company's balance sheet at US$604,000 as at 31 October 2019, t...