(Alliance News) - ADM Energy PLC on Monday said it has raised a total of GBP475,000 before costs through a placing for new shares and a subscription by directors.
The London-based natural resources investing company said it has issued 31.7 million shares at a price at 1.5 pence each. The placing price equates to a 21% discount to the mid-market closing price of the company's shares on November 12 of 1.9p.
ADM Energy shares were trading 15% lower in London on Monday at 1.58p each.
The fundraise comprises a placing of 20.0 million new shares to Monecor (London) Ltd, which will hold 3.3% of ADM Energy's enlarged share capital, and a subscription for 11.7 million new shares by directors of the company.
The company also said it has conditionally issued 6.7 million warrants to Monecor to subscribe for shares at an exercise price of 3p each, on the basis of three warrants per placing share, with an exercise period of two years.
The raised funds will be used to provide general working capital for the company, it said, in order to continue its strategy of identifying and evaluating assets in West Africa. The company noted that it is currently assessing several investment opportunities.
Turning to operations, ADM Energy said it continues to assess the draft of a preliminary technical report for the Barracuda field, offshore Brazil. The report is still to be finalised pending further technical appraisal and, therefore, ADM Energy said it will only be able to finalise the proposed development plans for Barracuda once it is completed.
At Aje field, offshore Nigeria, ADM Energy said the Aje Joint Partners continue to work on a final investment decision on a new multi-phase development plan which could increase production levels. As part of the field development plan, ADM Energy said its technical team has examined the feasibility of using the existing infrastructure available, where possible, for the supply of the two new subsea wells Aje-6 and Aje-7.
"The field development plans at Aje are advancing and it is pleasing that our latest findings indicate that the existing infrastructure can be used to supply the two new wells, lowering the cost of development without impacting the expected potential increase in production," said Chief Executive Osamede Okhomina.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Adm Energy (ADME)