REG - ADM Energy PLC - Internal Review of Aje Field Interest

Adm EnergyAnnouncement

01/12/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231201:nRSA2825Va&default-theme=true

RNS Number : 2825V  ADM Energy PLC  01 December 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
EU REGULATION 596/2014 (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018). UPON THE PUBLICATION OF THIS
ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN.

 

 

1 December 2023

 

ADM Energy PLC

("ADM" or the "Company")

 

Internal Review of Aje Field Interest

 

ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural-resources investing
company, announces that the Board of Directors have completed an internal
review of existing investments, financial resources and future investment
opportunities available to the Company. The key takeaways of this review
include:

 

·    The Board has concluded that opportunities available to it in energy
technology, such as  the OFX Technologies, LLC investment announced 29
November 2023, present a compelling path to growth in per share value and cash
flow for the Company.

·    As a result, the Board has resolved to consider alternatives for
monetising its 12.3% cost share and 9.2% profit share interest in the Aje
Field, OML-113 offshore Lagos, Nigeria.

·    Alternatives to be considered by the Company for Aje include its
sale, a joint-venture, farming-out or other such transactions.

·    Among other alternatives to be considered, Energy Equity Resources
(Nigeria), Ltd. ("EER"), a 16.8% cost share and 12.6% profit share partner in
the Aje consortium, will work with the Company on potential alternatives
involving third party financing to meet the requirements of both EER and the
Company related to the Aje.

·    The Board has resolved to hire a third-party adviser to manage the
process of identifying and executing a potential transaction related to its
interest in OML-113 and to discuss with its auditors any implications in
respect of the classification of the Aje asset.

 

OML-113 Description and Recent Developments

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, Aje
represents 8.9 million barrels of oil equivalent resources with a mid-case
PV-10% of US$25.9 million to ADM's interest based on a US$70 oil price
scenario.

The decision by the Board to consider alternatives for monetising the
Company's interest in Aje follows the acquisition by PetroNor E&P ASA
("PetroNor") of an additional 32.1% cost sharing and 24.1% profit share
interest in OML-113 announced 3 October 2023.  Under PetroNor's leadership,
the Company and its consortium partners have been in dialog regarding plans to
proceed to a final investment decision regarding the further development of
Aje in 2024.

 

Additionally, the consortium has commenced reprocessing of 3-D seismic
covering the Aje Field and a significant portion of the OML 113 license area
offshore Nigeria.  The reprocessing is near completion and fully reprocessed
3-D seismic is expected to be available for interpretation in early 2024.

 

The Board view these positive developments with respect to commercialising Aje
as presenting a favourable time to initiate the process of partnering,
financing or monetising its interest through sale of the asset with the
objective of maximising value and freeing up capital to deploy into other
projects in keeping with the focus of the Company on opportunities in energy
related technologies.

 

Stefan Olivier, CEO of ADM Energy plc, said: "The investment in Efficient
Oilfield Solutions, LLC announced 29 November 2023 is a pivotal strategic
development representing a new focus for the Company away from capital
intensive, long lead-time projects toward compelling opportunities with a
clear path to cash flow in high growth energy technology and energy transition
related opportunities."

"With recent interest by the German government in working with Nigeria to
realise the potential of its massive natural gas reserves, Aje represents a
de-risked asset that we believe will be attractive to a variety of strategic
and financial investors.  Along with the entire Board of ADM, I am committed
to realising the potential of the Aje Field and the entire license area for
ADM and its shareholders while re-deploying capital into the attractive energy
technology opportunities available to the Company."

Enquiries:

 

 ADM Energy plc                                       +44 7595 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 focused on building a portfolio of investments in line with growth in
energy technology and the energy transition. ADM Energy holds a 9.2% profit
interest in the 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.

 

 

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.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCURVNROUUAOAA