REG - ADM Energy PLC - Further re: Barracuda Oil Field

Adm EnergyAnnouncement

29/11/2021 12:55

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RNS Number : 9047T  ADM Energy PLC  29 November 2021

 

 

29 November 2021

 

ADM Energy PLC

("ADM" or the "Company")

 

Further re: Barracuda Oil Field

 

ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resources investing
company, notes the announcement made today by Zenith Energy Limited in respect
of its option agreement for OML 141 risk service contract.

 

As announced on 23 November 2021, K.O.N.H UK Limited ("KONH"), a company in
which ADM acquired a 51 per cent. equity interest and which holds an indirect
70 per cent. controlling interest in a risk sharing agreement in the Barracuda
oil field in OML 141, was notified by Noble Hill-Network Limited ("NHNL") of a
dispute regarding its ownership of NHNL.

 

ADM, and its legal advisers, continue to assert that the dispute brought by
NHNL is without merit and confirms that there has been no subsequent change to
KONH's position as majority shareholder in NHNL.

 

The Company further notes speculation in relation to a payment demand from
NHNL for $1.75 million from the Company. ADM confirms that, whilst such an
obligation had been included in non-binding pre-contractual documents in
relation to the Barracuda field investment, this obligation was superseded and
not replicated in the executed contractual documents which do not contain any
obligation on the Company to fund NHNL with this amount. ADM's legal advisers
wrote to NHNL outlining its position and stated that the claim was without
merit.

 

The Company continues to take advice on this matter and will update the market
further in due course.

 

Enquiries:

 

 ADM Energy plc                                      +44 20 7459 4718
 Osamede Okhomina, CEO
 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
 (Lead Broker)
 Claire Louise Noyce

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

 Luther Pendragon                                    +44 20 7618 9100
 (Financial PR)
 Harry Chathli, Alexis Gore, Tan Siddique

 

 

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 9.2% profit
interest in the oil producing Aje Field, part of OML 113, which covers an area
of 835km² offshore Nigeria. 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.

 

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