13 June
2024
ADM Energy
PLC
("ADM" or
the "Company")
JKT Reclamation Facility
Operations Update
ADM Energy PLC (AIM: ADME; BER and
FSE: P4JC), a natural resource investing company, is pleased to
provide the following update with respect to operations of JKT
Reclamation, LLC ("JKT"), the revenue and cash flow generating oil
reclamation business in which the Company owns a 30.6% economic
interest.
Further to the announcement on 23 May 2024, the
Company has now taken delivery of its 550-barrel capacity mixing
tank and the two new pumps, which will be installed at the site
imminently. JKT has initiated a work program that includes
reconfiguring existing storage capacity, installing the new
equipment and other projects designed to improve the processing
capacity and efficiency of its facility in Wilson, Oklahoma.
Table 1.0 highlights the gross barrels of oil
produced at the facility from the first month of operations,
February 2024.
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Feb 2024
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Mar 2024
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Apr 2024
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May 2024
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Gross Oil Volume Produced (bbls)
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944
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1,475
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1,031
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1,212
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Table
1.0. Summary of JKT produced oil volumes.
JKT continues to evaluate properties
for a second reclamation facility in the State of Texas.
Further details regarding the second reclamation facility will be
provided in due course.
ADM is further pleased to announce
that it has received a cash distribution from JKT in the amount of
US$14,000.00 in May 2024 for production during April 2024. The
Company expects cash distribution levels to grow with production in
the coming months. The Company will receive 42.0% of cash
distributions until it has received US$356,250.00 and 30.6%
thereafter
Commenting on the monthly JKT
operations update Stefan Olivier, CEO, stated: "We are pleased by
the initiation of the work program at the Wilson, Oklahoma facility
and the expected increase in production and cash flow we expect the
upgrade to drive upon completion. The stable cash flow that
this business is capable of generating fits ADM's strategy and the
Board is interested in participating in a second reclamation
facility in the State of Texas."
Market Abuse Regulation (MAR) Disclosure
The information contained within
this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018 ('MAR'). Upon the
publication of this announcement via Regulatory Information Service
('RIS'), this inside information is now considered to be in the
public domain.
Enquiries:
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ADM Energy
plc
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+44 7495 779520
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Stefan Olivier, Chief Executive Officer
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www.admenergyplc.com
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Cairn Financial
Advisers LLP
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+44 20 7213 0880
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(Nominated Adviser)
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Jo Turner, James Caithie
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ODDO BHF Corporates
& Markets AG
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+49 69 920540
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(Designated Sponsor)
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Michael B. Thiriot
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Gracechurch
Group
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+44 20 4582 3500
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(Financial PR)
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Harry Chathli, Alexis Gore, Henry Gamble
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About ADM Energy PLC
ADM Energy PLC (AIM: ADME; BER and
FSE: P4JC) is a natural resources investing company with
investments including a 30.6% economic interest in JKT Reclamation,
LLC; a 46.8% economic interest in OFX Technologies, LLC
(www.ofxtechnologies.com);
and a 9.2% profit interest in the Aje Field, part of OML 113, which
covers an area of 835km² offshore Nigeria. Aje has multiple oil,
gas, and gas condensate reservoirs in the Turonian, Cenomanian and
Albian sandstones with five wells drilled to date.
About JKT Reclamation LLC
JKT Reclamation is the owner of a
20-acre facility in Wilson, Oklahoma with fixed assets including a
workshop and office structure, ten 410-barrel storage tanks and
other related separation and material handling equipment. In
addition to the property, plant and equipment, other assets include
two proprietary chemical formulae with additional potential
commercial applications. JKT management believe its proprietary
chemicals give JKT two key competitive advantages over other
similar facilities because:
· JKT's
chemical-based process does not require use of a centrifuge, which
are expensive to operate and maintain, the operating costs required
to process and recover saleable oil are lower than they would be if
a centrifuge were employed in JKT's process; and,
· JKT owns
its chemical formulae, JKT does not have to purchase similar,
commercially available chemicals, resulting in substantial cost
savings to JKT.
JKT management believe the
combination of these two advantages allows JKT to achieve
substantially higher operating profit margins than similar
facilities and that, long term, JKT can use this cost advantage to
increase its market share in its service area.
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.
