RNS Number : 2505V
ADM Energy PLC
05 July 2024
 

 

 

5 July 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 13 June 2024, the Company has now commenced a work program that includes reconfiguring existing storage capacity, installing its 550-barrel capacity mixing tank and additional separation and heating equipment to increase the processing capacity and efficiency of its facility in Wilson, Oklahoma.  Production has been temporarily suspended from 8 June 2024 to allow for the repositioning of certain equipment and cleaning of the facilities.  Production is expected to be re-initiated the week of 15 July 2024.

Table 1.0 highlights the gross barrels of oil produced at the facility from the first month of operations, February 2024.

 

 

Feb 2024

Mar 2024

Apr 2024

May 2024

June 2024

Gross Oil Volume Produced (bbls)

944

1,475

1,031

1,212

367*

Table 1.0. Summary of JKT produced oil volumes. * - Based on one week of production, representing an estimated normalized monthly production figure of c. 1,470 bbls

 

No distributions were made for the month of June 2024 due to the need to reinvest in the work program currently in progress.  Additionally, no distributions are expected for the month of July 2024 due to the minimal sales resulting from suspension of production from 8 June 2024.  To date, the Company has received cumulative cash distributions from JKT of US$35,000 and expects distributions to be re-initiated following completion of the work program and re-initiation of production at the facility.

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.

Commenting on the monthly JKT operations update Stefan Olivier, CEO, stated: "We look forward to completion of the work program and achieving our targeted levels of 3,500 to 4,000 barrels per month of production and significantly higher cash flow and distributions that the upgrade of the facilities is expected to deliver."  

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:

 

ADM Energy plc

+44 7495 779520

Stefan Olivier, Chief Executive Officer

 

www.admenergyplc.com

 

 

 

Cairn Financial Advisers LLP

+44 20 7213 0880

(Nominated Adviser)

 

Jo Turner, James Caithie

 

 

 

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 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. 

 

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