Advance Energy PLC continues to evaluate cash flow driven opportunities
Advance Energy PLC (AIM:ADV) has told investors that its partner Carnarvon Petroleum has decided not to enter the next exploration phase of the production sharing contract TL-SO-T 19-14, which hosts the Buffalo project. , and that the license is now obsolete.
As a result, the company now becomes a cash shell under AIM market rules.
The rules state that the company is required to complete one or more acquisitions, which constitutes a reverse takeover within six months of May 27, 2022. Alternatively, it can choose to become an investment company, which would also require him to raise at least £6million. and submit a new admission document.
“The company continues to evaluate a number of oil and gas opportunities, with a focus on materiality and cash flow generation consistent with its stated strategy,” it said in a brief statement.
“Further announcements will be made as they become available.”
In February, Advance Energy’s newly appointed chief executive detailed the company’s plans to find new business after disappointing January results.
Speaking to Proactive, Larry Bottomley revealed investment plans for the company’s recovery, with the company looking for opportunities that have free cash flow and production.
Bottomley in February said the company hoped to seize opportunities before the end of the year.
“We have aggressively adopted a strict process of capital discipline in terms of cash management. Reducing overhead gives us the breathing room and, for us, most importantly, it gives us time to undertake the business we are working on,” he said.