REG - ADM Energy PLC - JKT Reclamation Facility Operations Update

Adm EnergyAnnouncement

05/07/2024 07:45

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RNS Number : 2505V  ADM Energy PLC  05 July 2024

 

 

5 July 2024

 

 

ADM Energy PLC

("ADM" or the "Company")

 

JKT Reclamation Facility Operations Update

 

ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resource investing
company, is pleased to provide the following update with respect to operations
of JKT Reclamation, LLC ("JKT"), the revenue and cash flow generating oil
reclamation business in which the Company owns a 30.6% economic interest.

Further to the announcement on 13 June 2024, the Company has now commenced a
work program that includes reconfiguring existing storage capacity, installing
its 550-barrel capacity mixing tank and additional separation and heating
equipment to increase the processing capacity and efficiency of its facility
in Wilson, Oklahoma.  Production has been temporarily suspended from 8 June
2024 to allow for the repositioning of certain equipment and cleaning of the
facilities.  Production is expected to be re-initiated the week of 15 July
2024.

Table 1.0 highlights the gross barrels of oil produced at the facility from
the first month of operations, February 2024.

 

                                   Feb 2024  Mar 2024  Apr 2024  May 2024  June 2024
 Gross Oil Volume Produced (bbls)  944       1,475     1,031     1,212     367*

Table 1.0. Summary of JKT produced oil volumes. * - Based on one week of
production, representing an estimated normalized monthly production figure of
c. 1,470 bbls

 

No distributions were made for the month of June 2024 due to the need to
reinvest in the work program currently in progress.  Additionally, no
distributions are expected for the month of July 2024 due to the minimal sales
resulting from suspension of production from 8 June 2024.  To date, the
Company has received cumulative cash distributions from JKT of US$35,000 and
expects distributions to be re-initiated following completion of the work
program and re-initiation of production at the facility.

JKT continues to evaluate properties for a second reclamation facility in the
State of Texas.  Further details regarding the second reclamation facility
will be provided in due course.

Commenting on the monthly JKT operations update Stefan Olivier, CEO, stated:
"We look forward to completion of the work program and achieving our targeted
levels of 3,500 to 4,000 barrels per month of production and significantly
higher cash flow and distributions that the upgrade of the facilities is
expected to deliver."

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.

 

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

 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 investments including a 30.6% economic interest in JKT
Reclamation, LLC; a 46.8% economic interest in OFX Technologies, LLC
(www.ofxtechnologies.com (http://www.ofxtechnologies.com) ); and 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.

 

About JKT Reclamation LLC

JKT Reclamation is the owner of a 20-acre facility in Wilson, Oklahoma with
fixed assets including a workshop and office structure, ten 410-barrel storage
tanks and other related separation and material handling equipment. In
addition to the property, plant and equipment, other assets include two
proprietary chemical formulae with additional potential commercial
applications. JKT management believe its proprietary chemicals give JKT two
key competitive advantages over other similar facilities because:

 

·    JKT's chemical-based process does not require use of a centrifuge,
which are expensive to operate and maintain, the operating costs required to
process and recover saleable oil are lower than they would be if a centrifuge
were employed in JKT's process; and,

 

·    JKT owns its chemical formulae, JKT does not have to purchase
similar, commercially available chemicals, resulting in substantial cost
savings to JKT.

 

JKT management believe the combination of these two advantages allows JKT to
achieve substantially higher operating profit margins than similar facilities
and that, long term, JKT can use this cost advantage to increase its market
share in its service area.

 

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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