Last checked at 12 Oct 2020 07:00
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
12 October 2020
ADM Energy PLC
("ADM" or the "Company")
14th Cargo Lifting at Aje Field
ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resources investing company, is pleased to announce the completion of the 14th Lifting ("Lifting") at the Aje Field, part of OML 113 offshore Nigeria in which the Company currently holds a 5% crude entitlement.
As a result of the market volatility caused by the coronavirus pandemic, certain Aje Partners made the decision earlier this year to defer oil sales and store production on the FPSO, which has up to 750,000 barrels of storage capacity. Therefore, the Company and other partners chose not to participate in the 13th Lifting which occurred in March 2020 due to the prevailing oil price at the time. This has allowed ADM to benefit from the recovery in oil prices during the intervening period.
The Lifting totalled 557,091 barrels with a net share of 33,056 barrels to ADM, which equates to ADM's paying interest of approximately 6%. The proceeds of the Lifting will be applied against the project debt, significantly reducing the outstanding balance. The nominated offtake partner for the Lifting was Mercuria Energy Group Ltd, the global integrated energy and commodity trading company.
Osamede Okhomina, CEO of ADM Energy plc, said:
"Faced with market volatility earlier this year, we chose to take advantage of the large storage capacity onboard the FPSO and to defer oil sales from Aje. It is therefore very pleasing to have now competed the 14th lifting at a significantly higher price than would have been possible earlier in the year.
"We expect to further benefit in the coming months from rising production at Aje in H2 2020, increasing our stake in the asset as we conclude the EER transaction, and a further improvement in the oil price forward curve."
Enquiries:
ADM Energy plc | +44 20 7459 4718 |
Osamede Okhomina, CEO | |
www.admenergyplc.com | |
Cairn Financial Advisers LLP | +44 20 7213 0880 |
(Nominated Adviser) | |
Jo Turner, James Caithie | |
Hybridan LLP | +44 20 3764 2341 |
(Lead Broker) | |
Claire Louise Noyce | |
Pello Capital Limited | +44 20 3700 2500 |
(Joint Broker) | |
Dan Gee | |
Oddo Seydler Bank AG | +49 69 920540 |
(Designated Sponsor) | |
Michael B. Thiriot | |
Luther Pendragon | +44 20 7618 9100 |
(Financial PR) | |
Harry Chathli, Alexis Gore, Joe Quinlan |
About ADM Energy PLC
ADM Energy PLC (AIM: ADME; BER and FSE: P4JC) is a natural resources investing company with an existing asset base in Nigeria. ADM Energy holds a 5% profit interest in the Aje Field, part of OML 113, which covers an area of 835km² offshore Nigeria, and in February 2020 entered into an agreement with EER (Colobos) Nigeria Limited to acquire a further 4.2% profit interest. Aje has multiple oil, gas, and gas condensate reservoirs in the Turonian, Cenomanian and Albian sandstones with five wells drilled to date.
ADM Energy is seeking to build on its existing asset base in Nigeria and target other investment opportunities across the West African region in the oil and gas sector with attractive risk reward profiles such as proven nature of reserves, level of historic investment, established infrastructure and route to early cash flow.