Advance Energy ( ADV ), the energy company seeking growth through acquisition or farm-in to non-operated interests in discovered upstream projects, announces that Carnarvon Petroleum Timor, Lda has elected not to enter the next period of the TL-SO-T 19-14 Production Sharing Contract (the "Buffalo Licence").
As a consequence t he Buffalo Licence will lapse on 27 May 2022 and the Company will become an AIM Rule 15 cash shell ("AIM Rule 15 Cash Shell") on that date.
As an AIM Rule 15 Cash Shell, the Company is required to make an acquisition, or acquisitions, which constitutes a reverse takeover under AIM Rule 14 (including seeking re-admission under the AIM Rules for Companies) within six months from 27 May 2022. Alternatively, within such time period, the Company can seek to become an investing company pursuant to AIM Rule 8, which requires, inter alia, the raising of at least £6 million and publication of an admission document. In the event that the Company does not complete a reverse takeover under AIM Rule 14 within such six month period or seek re-admission to trading on AIM as an investing company pursuant to AIM Rule 8 (either being, a "Re-admission Transaction"), the Company's ordinary shares would be suspended from trading pursuant to AIM Rule 40. Thereafter, if a Re-admission Transaction has not been completed within a further six month period, admission to trading on AIM of the Company's ordinary shares would be cancelled.
The Company continues to evaluate a number of oil and gas opportunities, with an emphasis on materiality and cash flow generation in line with its stated strategy. Further announcements will be made as and when appropriate.