Oil Explorer AVD Boosts Near Term Production Potential The...

Oil Explorer AVD Boosts Near Term Production Potential

The current, temporary low price of oil represents a good opportunity to pick up oil explorers at a heavily discounted rate…
One in our portfolio is capped at just $2.5M, yet led by a Board with decades of experience in high impact oil and gas exploration at majors – Antilles Oil and Gas (ASX:AVD).
AVD recently added aother string to its bow – in the form of a second onshore block in Peru, with high potential for near term production.
AVD’s new onshore block sits within the highly prospective Sechura Basin, which has proven source rock for hydrocarbon discoveries nearby.
Good oil shows in two wells in and nearby AVD’s new block prove the extent of a working hydrocarbon system…
The experienced team at AVD has observed large scale structures which have substantial resource potential here.
AVD had previously secured Block 105, which has a prospective resource of around 30 million barrels, in just one small section – with large scale deeper potential to be defined on reprocessing of old seismic data.
Both AVD’s Peruvian assets have been selected for economic reasons – attractive even in a low oil price environment.
AVD is pursuing a dual strategy of developing near term onshore production while pursuing high impact offshore exploration. This is a fine balance of generating steady cash flow and potentially hitting a transformational company making discovery.
And just imagine when the oil price recovers…
While this onshore action bubbles away, AVD has formed partnerships with top tier offshore exploration and drilling companies to hopefully find the next big oil discovery offshore Caribbean and South America.
AVD is currently raising up to $3.7M in a Renounceable Entitlement Issue of 3 shares for every 2 held be shareholders. The funds will be used to re-work the seismic data on Block 105 and also apply the funds to AVD’s first well planned on this acreage.
So looking ahead, the coming months are set to be full of big events…