Transcription of Finance News Network Interview with Advent Energy Limited Executive Director, David Breeze
Lelde Smits: Hello I’m Lelde Smits for the Finance News Network and joining me from Advent Energy is its Executive Director, David Breeze. David welcome to FNN.
David Breeze: Thank you.
Lelde Smits: Advent Energy is a public unlisted oil and gas company located in Perth in Western Australia. Where are your operations located and at what stage are they?
David Breeze: So we have two operations, one in the onshore southern Bonaparte in the far north of Western Australia. And we also have an 85 per cent interest in the offshore Sydney Basin, which obviously is a significant project in the current position for gas, in the eastern seaboard of Australia. We are now looking to commercialise our proven conventional resource in the Bonaparte Basin. And will then look as well, to develop the very significant potential of the 9 TCF of shale gas resource that we have in that same area.
Lelde Smits: As you mentioned, the Company also holds interests in the onshore Bonaparte Basin in Northern Australia. What is the history of discoveries in the Basin?
David Breeze: There have been 16 wells drilled in the area, virtually every single well discovered gas and/or oil. The way in which to look at this, however, is to understand that when they were drilling these wells over the last 50 years, they were looking for oil and they were very successful at discovering gas. In fact the Bonaparte Basin has one of the highest success rates of any well, of any area in Australia. And in addition, it contains around just under 20 per cent of Australia’s proven conventional liquids and gas.
Lelde Smits: What is Advent Energy’s strategy for developing the assets?
David Breeze: So the next step is commercialisation of the conventional resources, which are in the onshore Bonaparte, they’re a proven resource. We have the customer base around us in a 500 kilometre radius. They use diesel as their main source of electricity generation, and that means that their energy is extremely expensive. Substituting that with LNG puts us in a position, an eminent position, where we can immediately start cash flow and they can reduce their expenses.
Lelde Smits: And David, could you give us an idea of the other companies that are operating around you?
David Breeze: Around us there are groups like Argyle Diamond Mines, Panoramic Resources (ASX:PAN), there is the silver lead zinc project of Sorby Hills. There are iron ore and other precious metals projects, all of which need a substitute for diesel, which is expensive for them really to operate.
Lelde Smits: Advent Energy also has the project PEP 11 located offshore Sydney Basin. What is your interest in the project and what do you find compelling about the region in which it’s located?
David Breeze: We hold an 85 per cent interest in PEP 11; the area is adjacent to Sydney and up to Newcastle. Obviously in the New South Wales area, there is a pending shortage of gas. Gas prices have moved from $3 to $4 and up to $8 to $9. Therefore, for us to develop a significant conventional resource in the area immediately offshore, the biggest market in Australia, really would be extremely important for New South Wales, but also obviously then for Advent.
Lelde Smits: Advent Energy also has a number of partnerships with fellow oil and gas companies, but who are your main backers?
David Breeze: The two main backers are MEC Resources Limited (ASX:MMR) and also BPH Energy Limited (ASX:BPH). And we’ve raised from them and from other backers, just over $38 million. In addition to that we have as just under a 10 per cent shareholder, the interests of the Talbot Family Group.
Lelde Smits: Advent Energy also holds a strategic stake in Central Petroleum Limited (ASX:CTP). What is your relationship with the company and positioning in terms of projects?
David Breeze: Central Petroleum has us as one of their top 20 shareholders. We’ve been an investor in them for the last five years. Central now has Total and Santos as joint venture partners, and they’re working to prove up a significant shale gas resource in this area. Were they to do that then obviously, we would reap the benefits of our investment in the company.
Lelde Smits: Finally David, where would you like to see Advent Energy by the end of this year and what is your timeline and development strategy?
David Breeze: We want to be in a position so we can start commercial sales of our proven conventional gas resource in the onshore Bonaparte. We then want to be in a position to be able to develop the potential of the shale gas resource in the Bonaparte. And in addition to that, then look to develop and prove up the conventional gas resource in the offshore Sydney Basin.
Lelde Smits: David Breeze, thank you for the introduction to Advent Energy.
David Breeze: Thank you indeed.
Ends
MMR Price at posting:
3.8¢ Sentiment: None Disclosure: Held
(20min delay)
