East Timor set for big offshore well as Buffalo deal completed

  • Date: 20-Apr-2021
  • Source: Energy Voice
  • Sector:Economy
  • Country:Gulf
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East Timor set for big offshore well as Buffalo deal completed

Australia's Carnarvon Petroleum is one step closer to seeing what BHP and Nexen left behind at the historic Buffalo field offshore East Timor. An exploration well is set to be drilled in late 2021 following the completion of a farm-out deal with UK-listed Advance Energy.

Carnarvon Petroleum said today that it has completed a 50% farm-out of Buffalo to Advance Energy with the UK company funding the upcoming Buffalo-10 well for up to $20 million on a free carry basis. Advance has met this funding requirement and now has a 50% stake in the project.

“The Buffalo-10 well is on track to be drilled in late 2021, subject to securing a drilling rig, where the tendering process is already underway,” said Carnarvon.

“Following the well, the joint venture will acquire development funding from third party lenders and any additional funding requirements will be provided by Advance as an interest free loan,” added Carnarvon.

The operator, Australian-listed Carnarvon Petroleum, and new partner Advance Energy, are hoping to develop more than 30 million barrels of oil that previous operators, including BHP and Nexen Petroleum, appear to have missed offshore East Timor, also known as Timor Leste.

The Buffalo oil field was originally discovered in 1996 by