Climate change activists may be wreaking havoc across the country, but one simple fact remains: The world is dependent on oil and gas and will certainly continue to do so for some time.
Boris Johnson is set to push the green agenda, but as recent spikes in oil and gas prices show, demand for these hydrocarbons remains and is expected to increase in the coming years.
Advance Energy hopes to take advantage of the global reliance on oil. Established in February 2020, the business targets oil fields that have already been explored but are currently underdeveloped or under-funded.
As the recent price hikes show, the world is dependent on oil and gas and will almost certainly continue to do so for some time. Advance Energy is ready to take advantage of this
Chief Executive Leslie Peterkin strives to use his experience and industry contacts to unlock the full potential of these assets and deliver substantial rewards to shareholders.
Peterkin, 67, has spent 40 years in the oil industry, including a decade at Shell, followed by senior positions at Australian majors Woodside and Santos.
He has also served as a consultant for independent energy firms, each time accused of turning neglected assets into valuable and highly productive oil fields.
Now, he is determined to prove his mettle at Advance, backed by another oil giant, Chairman Mark Rollins.
His first project is Buffalo-10, formerly owned by commodities giant BHP but lying fallow for more than 15 years.
Situated between Australia and East Timor, the Buffalo site produced oil for many years but no technology was available to assess and exploit its full potential.
Technology has advanced significantly since then and independent analysis shows that 34 million barrels of oil lie under the sea at the Buffalo site.
A drilling program will begin next month and if the analysis turns out to be correct, it will be a game-changer for Advance.
Confidence is so high that discussions are underway with lenders and contractors to take the site to production by the end of 2023, producing around 30,000 barrels a day and 40,000 barrels a year thereafter.
From the outset, Peterkin felt that the company could provide shareholder rewards if it took a joint venture approach to each asset, where Advance provides expertise, industry liaison and funding, while the other party oversees day-to-day operations. focuses.
Australian-listed Carnarvon is Peterkin’s partner at Buffalo and revenue will be shared equitably, but forecasters believe Advance will be able to quickly cover the cost of getting the site into production and then incur excessive cash. will become productive.
Meanwhile, Peterkin is in advanced talks on two more ventures that should add to the Advance roster and create long-term value. There is also talk of dividends in the coming years.
Midas Verdict: Investing in pre-revenue energy businesses is never risk-free, but Peterkin’s experience opens doors across the industry, while his focus on already developed sites increases his chances of success.
Advance is an extremely low-cost business and field watchers believe Buffalo will prove to be a winner. At 3.3p, the company is definitely worth a punt for the adventurous oil lover.
traded on: aim Ticker: Adv. contact: Advanceplc.com or 01624 681250
… or get a stake in the green battery reward
For investors who are into a more ecosystem-oriented world or want to hedge their bets in a climate-conscious world, the Harmony Energy Income Trust may prove to be just the ticket.
Harmony specializes in battery storage plants, which allow electricity to be left on the grid and sent to homes and businesses when it is needed most.
The company, based in Nearesborough, North Yorkshire, is expected to list on the stock exchange in early November and is looking to raise £230 million.
Shares will be available for sale this week at £1 each, on primary bidding or through intermediaries such as AJ Bell and Hargreaves Lansdowne.
Going green: Battery storage makes the transition to renewable energy more feasible—and the Harmony Energy Income Trust is an expert in the field
With an eye on income-seekers, Harmony boss Paul Mason is targeting an 8 percent dividend yield from 2023, payable quarterly and growing at 2 percent next year.
The group will earn its money from buying electricity in wholesale markets when it is cheaper, usually overnight from renewable sources, and selling it between 5 pm and 7 pm when it is in highest demand.
Harmony can do this by storing energy in giant batteries located strategically near local power distribution points.
Battery storage in the UK has only been around for a few years, but Harmony was there from the start, so it gets access to good projects quickly and at attractive prices.
As such, Mason will use the flotation proceeds to purchase six projects, capable of storing 312.5MW of electricity, enough to power 95,000 homes a year.
Harmony has exclusive rights to acquire more sites over the next five years, capable of storing another 687.5MW of electricity.
It also has a longstanding relationship with Tesla and has agreed to provide state-of-the-art battery systems for US giant Harmony’s initial portfolio of sites.
Midas Verdict: The past few weeks have shown that when the wind doesn’t blow and the sun doesn’t shine, the entire UK power system is under strain.
Battery storage makes the transition to renewable energy more feasible and Harmony is an expert in this area. The dividend yield is also attractive. When shares go up for sale at £1, they are worth a closer look.
To be traded on: main market Ticker: Power contact: harmonerenergy.co.uk or 01423 799109