REG - ADM Energy PLC - Aje Field Internal Technical Review Update

Adm EnergyAnnouncement

02/04/2024 07:00

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RNS Number : 9037I  ADM Energy PLC  02 April 2024

 

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
 www.admenergyplc.com (http://www.admenergyplc.com/)

 Cairn Financial Advisers LLP                         +44 20 7213 0880
 (Nominated Adviser)
 Jo Turner, James Caithie

 Hybridan LLP                                         +44 20 3764 2341
 (Broker)
 Claire Louise Noyce

 ODDO BHF Corporates & Markets AG                     +49 69 920540
 (Designated Sponsor)
 Michael B. Thiriot

 Gracechurch Group                                    +44 20 4582 3500
 (Financial PR)
 Harry Chathli, Alexis Gore, Henry Gamble

 

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
(http://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.

 

 

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