Advantage Energy Ltd. - AAVVF stock
OTC Symbol: AAVVF | OTC Tier: Pink Current | Related ticker symbols: TSX:AAV
Overview[edit]
Advantage Energy Ltd. (OTC: AAVVF, TSX: AAV) seeks to achieve growth through developing the Montney natural gas and liquids resource play, in which it owns significant interest. The company headquarters is located in Calgary, Alberta, Canada.
The Montney play is located approximately 80 km northwest of Grande Prairie, Alberta. The holdings include 228 net sections containing 145,920 net acres of liquids-rich lands at Glacier, Valhalla, Progress and Pipestone/Wembley. Capital expenditures for the project are expected to reach or exceed $10 billion, with drilling of up to 1,400 wells. The company prides itself on low cost and sustainable energy production.[1]
Operations[edit]
Advantage is currently engaged in the development and delineation of its Montney natural gas and liquids resource located at Glacier, Wembley/Pipestone, Valhalla and Progress, Alberta. Current production includes 300 mmcfe/d (50,000 Boe/d), 91% natural gas and 9% light oil & NGLs with P+P Reserves Life Index: ~34 years.[2]
Significant Events[edit]
11/10/2022 – Commencement of Substantial Issuer Bid for up to $100,000,000 of common shares via a modified Dutch auction.[3]
10/24/2022 – Operational Update Highlights:[4]
- Completed a 14-day steady-state benchmarking trial using MEA at the Glacier CCS project
- Entropy's proprietary Modular Carbon CaptureTM process achieved a heat duty of 3.3 GJ/tonne, which is less than expectations for MEA with no additives or catalysts
- Capture efficiency was approximately 90% from 5.6% CO2 flue during the trial
Management[edit]
Key leaders:[5]
- Mike Belenkie, President & Chief Executive Officer
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- Started as Chief Operating Officer for Advantage, promoted to President in 2019 and CEO in 2022
- Over 20 years of experience in the oil and gas industry.
- Lead oversight for Modern Resources and aided the company in becoming a highly efficient Deep Basin producer
- Past roles include Vice President of Reservoir Engineering and Corporate Development at Painted Pony, and multiple roles at Talisman Energy including Team Lead of Montney and Northeast British Columbia
- Craig Blackwood. Chief Financial Officer
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- Over 25 years of experience in the energy industry.
- Nearly two decades of experience with Advantage, as Director of Finance, Vice President, Finance, and Chief Financial Officer.
- Past experience includes: Controller at Calpine Canada Natural Gas Company and Calpine Power Income Fund; Manager, Financial Accounting and Treasury at Engage Energy Canada, L.P.
Growth[edit]
Advantage not only has significant revenue, but is also profitable, and increased profits over 400% in one year. Insiders own CA$58 million worth of shares as of August 2022.[6]
Growth Plans[edit]
A three year plan was announced in late 2022 with the goal of increasing production by 10% per year over that period with 26 new wells being drilled each year. Up to $900 million in cash will be dedicated to investing activities. Up to $120 million will be spent to increase capacity to 500 mmcf/d at the Glacier/Valhalla/Progress facility. [7]
- ↑ Advantageog.com. About/strategy. Retrieved on 11/23/2022.
- ↑ Advantageog.com. AAVVF Operations. Retrieved on 11/23/2022.
- ↑ Yahoo Finance. Advantage Announces Commencement of its Substantial Issuer Bid for up to $100,000,000. November 10, 2022.
- ↑ Yahoo Finance. Entropy Inc. Provides Operational and Commercial Update. October 24, 2022.
- ↑ Advantageog.com. About/management. Retrieved on 11/23/2022.
- ↑ Simply Wall Street. If EPS Growth Is Important To You, Advantage Energy (TSE:AAV) Presents An Opportunity. August 8, 2022.
- ↑ Newswire. Advantage Announces 2023 Budget and Three-Year Strategic Plan. December 1, 2022.
