Last checked at 3 Aug 2020 10:00
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.
3 August 2020
ADM Energy PLC
("ADM" or the "Company")
Pre-qualification in Nigeria's 2020 Marginal Field Bid Round
ADM pre-qualifies in bidding for Nigerian marginal oil fields as exclusive technical partner to OilBank
ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resources investing company, is pleased to announce that it has successfully pre-qualified in the Nigerian Government's 2020 Marginal Field Bid Round ("Bid Round"). The Company is participating in the Bid Round as the exclusive technical partner of OilBank International Limited ("OilBank"), a Nigerian integrated oil and gas service management company.
On 1 June 2020, the Nigerian Department of Petroleum Resources ("DPR") announced the launch of a new bid round for a total of 57 marginal fields covering onshore, swamp and shallow offshore fields. The Bid Round, which is the first in Nigeria since 2003, is open to indigenous companies as well as companies such as ADM alongside local partners. After successfully demonstrating the required technical and financial capabilities, ADM and OilBank have now pre-qualified for the second stage of the Bid Round which consists of technical and commercial bid submission. The DPR is intending for all submissions to be returned by the end of August 2020.
ADM is participating in the Bid Round after signing a Memorandum of Understanding with OilBank as its exclusive technical partner to support its bidding for and any future development of the marginal fields. In the event that OilBank's application for a Marginal Field Licence is successful and it is awarded a Licence, the Company intends to enter into a substantive agreement with OilBank under which ADM expects to participate and invest in the development of any awarded fields.
Osamede Okhomina, CEO of ADM, said: "We are delighted to have pre-qualified for the submission stage of Nigeria's 2020 Marginal Field Bid Round in partnership with OilBank, an indigenous company with a vastly experienced Board and management team. The Bid Round is a tremendous opportunity to invest into an undervalued, near-term production asset during an unprecedented low oil price environment.
"The MOU with OilBank gives us a high-quality local partner to work alongside our team of expert technical advisers. This, combined with the Trafigura strategic alliance for up to US$100 million of pre-financing, means we are in a strong position to evaluate and finance investment into attractive oil and gas assets."
Biodun Otunola, Director of OilBank, commented: "We have great confidence in ADM as our exclusive technical partner for this marginal field round, the first to be launched in Nigeria in nearly twenty years. The ADM management team is highly knowledgeable of the local oil and gas sector, both from a technical standpoint and in deal making, and are proven skilled negotiators with both government bodies and counterparties. Having now pre-qualified, we look forward to working together as we progress our bid for marginal fields capable of delivering substantial value for us both."
Enquiries:
ADM Energy plc | +44 20 7786 3555 |
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), 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 858km² 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, route to early cash flow and exploration upside.
About Oilbank International Limited
Oilbank International Limited is a wholly Nigerian company, which was incorporated in 2011. It is an independent oil service company and is poised to play a significant role in the oil and gas sector as a limited liability company to pursue the business of product support services. The main range of activities include supply base, pipeline services, major construction services, drilling/production services, special transportation, equipment procurement and supplies.
Forward-Looking Statements
Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions shareholders and prospective shareholder holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.