Advance Energy plc, the energy company seeking growth through acquisition or farm-in to non-operated interests in discovered upstream projects, is pleased to announce the completion of its acquisition of a 50 per cent. equity interest in Carnarvon Petroleum Timor Unipessoal Lda ("Carnarvon Petroleum Timor"), the holder of a 100 per cent. working interest in, and the contractor of, the Buffalo PSC, offshore Timor-Leste ("Acquisition"). The Acquisition constituted a reverse takeover of the Company, pursuant to the AIM 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 ("Admission"). 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 "Placing"). 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. The Existing Ordinary Shares have been cancelled from trading on AIM and the New Ordinary Shares, including the Accrued Director Fee Shares and the Placing Shares, will be admitted to trading on AIM with effect from 8.00 a.m. today under the new ISIN of IM00BKSCP798 with SEDOL number BKSCP79.
On Admission, the Company will have 1,027,613,961 New Ordinary Shares with voting rights in issue. There are no New Ordinary Shares held in treasury. The figure of 1,027,613,961 may be used by shareholders, following Admission, as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
Capitalised terms used in this announcement (unless otherwise defined) carry the same meanings as those ascribed to them in the Company's Admission Document dated 31 March 2021 and/or the Company's announcement of 31 March 2021, unless the context requires otherwise .