Adm Energy Share News (ADME)

(Sharecast News) - Natural resources investment company ADM Energy has entered into a non-binding collaboration agreement with Nigerian-owned oil and gas production solutions company Eunisell, it announced on Monday.
The AIM-traded firm said that under the terms of the agreement, subject to the completion of certain due diligence, ADM and Eunisell would explore collaboration opportunities to carry out development of the Barracuda Field in licence OML 141, and associated work-related activity in Nigeria.

It was both parties' intention, together with the risk sharing consortium on the Barracuda Field, that a formal agreement would be reached ahead of any work starting.

The collaboration could be terminated by mutual consent.

ADM Energy said Eunisell had "decades of experience" in engineering, production, operations and enhanced production techniques within Nigeria, adding that the two companies intended to use their combined experience to accelerate production of oil and gas assets, initially concentrating initiating production at the Barracuda Field in which ADM recently invested.

Activities under the intended scope of work could include early production facility supply, procurement, construction and commissioning of production facilities, extended well testing and laboratory services.

Following discussions, Eunisell could consider providing vendor financing to achieve the scope of work to be agreed, subject to terms and conditions to be determined at an award of contract.

"The collaboration agreement with Eunisell, one of Nigeria's leading providers of oil field services and facilities, paves the way to bringing another high-class partner into the ADM fold," said ADM Energy chief executive officer Osamede Okhomina.

"With a customer base in the region featuring oil and gas majors, Eunisell has been a key facilitator for the Nigerian oil and gas marketplace for many years, helping operators to reach their production goals faster and at less capital costs.

"We look forward to building a relationship and are excited by the potential of working alongside them to support the development of our investments such as the Barracuda Field in OML 141."

At 0827 BST, shares in ADM Energy were down 0.82% at 3.62p.