Last checked at 2 Apr 2024 07:00
2 April 2024
ADM Energy PLC
("ADM" or the "Company")
Aje Field Internal Technical Review Update
ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resources investing company is pleased to provide the following update with respect to the internal technical review of its 12.3% cost share and 9.2% profit share interest in OML-113, Aje Field, offshore Nigeria, announced 1 December 2023.
Aje Field Internal Technical Review
· Since the announcement dated 1 December 2023, "Internal Review of Aje Field Interest" the Company has been contacted by a number of financial and strategic investment groups that have expressed interest in the Company's interest in the Aje Field. The Company remains in discussion with several of these groups and will provide further updates in due course;
· In the Autumn of 2023, the Operating Committee (of which the Company is a member along with Yinka Folawiyo Petroleum, PetroNor E&P and Energy Equity Resources Ltd. - the "Aje Partners"), initiated the reprocessing of 3D seismic covering the Aje Field and a significant portion of the OML-113 License area, offshore Nigeria, at a gross cost of approximately US$600,000 that has been settled from funds available to the Aje Partners in the Operating Account maintained by and for benefit of the Aje Partners;
· The 3D seismic reprocessing has been completed and a field wide structural reinterpretation by the Aje Partners and engaged geophysical consultants is currently underway;
· The Company intends to have the reinterpretation of the Aje field 3D seismic dataset reviewed by an independent technical consultant and provide an update to the field volumetrics and recoverable reserves and resources via a revised Competent Persons Report (CPR);
· Based on the initial internal review, the Aje Partnership believes that the results of the reprocessed Aje field 3D seismic dataset may have a material uplift on (i) the potential of the Aje field and (ii) the value of Aje, as well as financing options available to the Company for its interest in Aje Field.
Aje Field Description
The Company holds a 12.3% cost share and 9.2% profit share interest in OML-113 covering an area of 835km² offshore Nigeria, which includes the Aje Field. Aje, which has produced more than 5 million barrels of oil to date, is rich in gas and condensate reserves with multiple oil, gas, and gas condensate reservoirs in the Turonian, Cenomanian and Albian sandstones with five wells drilled to date. Based on ADM's 2019 Competent Persons Report, the Aje field represents 8.9 million barrels of oil equivalent resources with a mid-case NPV10% of US$25.9 million to ADM's interest based on a US$70 oil price scenario.
Stefan Olivier, CEO of ADM Energy PLC said: "The Board is very encouraged by the Aje Partnership's assessment of the newly reprocessed 3D seismic dataset across the Aje field. We look forward to having the data reviewed by an independent technical consultant and are confident that the results, once available, will result in a material uplift to the assessment of the Aje field and the intrinsic value of the asset."
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.
Notes:
Wim Burgers, MSc, a consulting Geoscientist to ADM Energy plc, who has over 40 years' experience in the oil & gas industry, is the qualified person that has reviewed and approved the technical content of this announcement.
Enquiries:
ADM Energy plc | +44 7495 779520 |
Stefan Olivier, Chief Executive Officer |
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www.admenergyplc.com |
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Cairn Financial Advisers LLP | +44 20 7213 0880 |
(Nominated Adviser) |
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Jo Turner, James Caithie |
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Hybridan LLP | +44 20 3764 2341 |
(Broker) |
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Claire Louise Noyce |
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ODDO BHF Corporates & Markets AG |
+49 69 920540 |
(Designated Sponsor) |
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Michael B. Thiriot |
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Gracechurch Group | +44 20 4582 3500 |
(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 an existing investment representing approximately 46.9% economic interest in OFX Technologies, LLC (www.ofxtechnologies.com) and a 9.2% profit interest in Aje Field, part of OML 113, which covers an area of 835km² offshore Nigeria. The Aje field has multiple oil, gas, and gas condensate reservoirs in the Turonian, Cenomanian and Albian sandstones with five wells drilled to date.
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.