Advance Energy (AVD)

Shares / Stock Code

AVD

Stock Exchange / Sharemarket

ax

Advance Energy Limited (AVD) is an Australian based exploration company engaged in the development, production and exploration of oil and gas. The Company was established to take over the energy projects in the United States containing existing proven production, proved behind pipe reserves and step out/in fill drilling potential. Advance Energy was listed on the Australian Stock Exchange on 2 June 2006. AVD has a portfolio of producing assets with identified exploration upside in Texas. The Company mainly focuses on identifying assets with development and/or exploration potential, acquiring these assets at a competitive price and finally realising extra value from them by reinterpreting existing data and further development.

Advance Energy acquired a 12.5% working interest in an additional three wells on the Key East Prospect and the rights to take part in the development drilling of up to nine additional wells in May 2007. The Company signed a joint venture agreement to co-develop prospective acreage in Martin and Dawson Counties, Texas during the year ended December 31, 2007. Motherlode Phase III project covers an area of 75 square miles (48,000 acres) of three-dimensional (3-D) seismic data that has been shot and interpreted. The project Mother Lode 3-D is situated in just north of Midland, Texas consisting of 250 square miles of 3-D seismic data sited in the northern part of Midland County.

Advance Energy History

Advance Energy is almost a virtual company, having a wide range of strategic partners offering deal flow to sub-contractors with wide-ranging experience. It has a US$20M debt facility with Sterling Bank. Advance Energy was established with a purpose of the acquisition and development of oil and gas assets in Texas, USA. The Company recorded a gross profit of $1.4M (up 450% y/y) in 1H07 from sales revenue of $1.7M. However its net profit was a loss of $0.98M. Though its operating cash flow was a negative $0.4M, but still it was much better than –$0.89M on 1H06.