TIDMADME
RNS Number : 2825V
ADM Energy PLC
01 December 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF EU REGULATION 596/2014 (WHICH FORMS PART OF
DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT
2018). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
1 December 2023
ADM Energy PLC
("ADM" or the "Company")
Internal Review of Aje Field Interest
ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a
natural-resources investing company, announces that the Board of
Directors have completed an internal review of existing
investments, financial resources and future investment
opportunities available to the Company. The key takeaways of this
review include:
-- The Board has concluded that opportunities available to it in
energy technology, such as the OFX Technologies, LLC investment
announced 29 November 2023, present a compelling path to growth in
per share value and cash flow for the Company.
-- As a result, the Board has resolved to consider alternatives
for monetising its 12.3% cost share and 9.2% profit share interest
in the Aje Field, OML-113 offshore Lagos, Nigeria.
-- Alternatives to be considered by the Company for Aje include
its sale, a joint-venture, farming-out or other such
transactions.
-- Among other alternatives to be considered, Energy Equity
Resources (Nigeria), Ltd. ("EER"), a 16.8% cost share and 12.6%
profit share partner in the Aje consortium, will work with the
Company on potential alternatives involving third party financing
to meet the requirements of both EER and the Company related to the
Aje.
-- The Board has resolved to hire a third-party adviser to
manage the process of identifying and executing a potential
transaction related to its interest in OML-113 and to discuss with
its auditors any implications in respect of the classification of
the Aje asset.
OML-113 Description and Recent Developments
The Company holds a 12.3% cost share and 9.2% profit share
interest in OML-113 covering an area of 835km(2) offshore Nigeria,
which includes the Aje Field. Aje, which has produced more than 5
million barrels of oil to date, is rich in gas and condensate
reserves with multiple oil, gas, and gas condensate reservoirs in
the Turonian, Cenomanian and Albian sandstones with five wells
drilled to date. Based on ADM's 2019 Competent Persons Report, Aje
represents 8.9 million barrels of oil equivalent resources with a
mid-case PV-10% of US$25.9 million to ADM's interest based on a
US$70 oil price scenario.
The decision by the Board to consider alternatives for
monetising the Company's interest in Aje follows the acquisition by
PetroNor E&P ASA ("PetroNor") of an additional 32.1% cost
sharing and 24.1% profit share interest in OML-113 announced 3
October 2023. Under PetroNor's leadership, the Company and its
consortium partners have been in dialog regarding plans to proceed
to a final investment decision regarding the further development of
Aje in 2024.
Additionally, the consortium has commenced reprocessing of 3-D
seismic covering the Aje Field and a significant portion of the OML
113 license area offshore Nigeria. The reprocessing is near
completion and fully reprocessed 3-D seismic is expected to be
available for interpretation in early 2024.
The Board view these positive developments with respect to
commercialising Aje as presenting a favourable time to initiate the
process of partnering, financing or monetising its interest through
sale of the asset with the objective of maximising value and
freeing up capital to deploy into other projects in keeping with
the focus of the Company on opportunities in energy related
technologies.
Stefan Olivier, CEO of ADM Energy plc, said: "The investment in
Efficient Oilfield Solutions, LLC announced 29 November 2023 is a
pivotal strategic development representing a new focus for the
Company away from capital intensive, long lead-time projects toward
compelling opportunities with a clear path to cash flow in high
growth energy technology and energy transition related
opportunities."
"With recent interest by the German government in working with
Nigeria to realise the potential of its massive natural gas
reserves, Aje represents a de-risked asset that we believe will be
attractive to a variety of strategic and financial investors. Along
with the entire Board of ADM, I am committed to realising the
potential of the Aje Field and the entire license area for ADM and
its shareholders while re-deploying capital into the attractive
energy technology opportunities available to the Company."
Enquiries:
ADM Energy plc +44 7595 779520
Stefan Olivier, Chief Executive Officer
www.admenergyplc.com
Cairn Financial Advisers LLP +44 20 7213 0880
(Nominated Adviser)
Jo Turner, James Caithie
Hybridan LLP +44 20 3764 2341
(Broker)
Claire Louise Noyce
ODDO BHF Corporates & Markets AG +49 69 920540
(Designated Sponsor)
Michael B. Thiriot
Gracechurch Group +44 20 4582 3500
(Financial PR)
Harry Chathli, Alexis Gore, Henry Gamble
About ADM Energy PLC
ADM Energy PLC (AIM: ADME; BER and FSE: P4JC) is a natural
resources investing company focused on building a portfolio of
investments in line with growth in energy technology and the energy
transition. ADM Energy holds a 9.2% profit interest in the Aje
Field, part of OML 113, which covers an area of 835km(2) offshore
Nigeria. Aje has multiple oil, gas, and gas condensate reservoirs
in the Turonian, Cenomanian and Albian sandstones with five wells
drilled to date.
Forward Looking Statements
Certain statements in this announcement are, or may be deemed to
be, forward looking statements. Forward looking statements are
identified by their use of terms and phrases such as "believe",
"could", "should", "envisage", "estimate", "intend", "may", "plan",
"potentially", "expect", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements reflect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.
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END
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