REG - ADM Energy PLC - OFXT Operations Update and Change of Broker

Adm EnergyAnnouncement

03/04/2024 07:00

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RNS Number : 0610J  ADM Energy PLC  03 April 2024

 

 

3 April 2024

 

ADM Energy PLC

("ADM" or the "Company")

 

OFX Technologies LLC Operations Update and Change of Broker

 

ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resources investing
company, is pleased to provide the following update with respect to operations
of OFX Technologies LLC ("OFXT"), 100% owner of Efficient Oilfield Solutions
LLC, the revenue generating software-as-a-service (SaaS) company targeting the
logistics sector of the U.S. oil & gas industry.  The Company owns a
46.8% economic interest in OFXT.

Since ADM completed its investment in OFXT as announced on 29 November 2023,
OFXT has completed several identified key business milestones including:

·    Completed E-Ticketing functionality for transportation companies
including: (i) operator and dispatcher request pages, (ii) workflow protocols
to push tickets through the transportation process until load is disposed,
(iii) automated approval process for operator representatives and (iv)
transporter back-office review capabilities and the ability to apply custom
pricing to invoices. OFXT is working to integrate invoicing capabilities with
third party software providers such as QuickBooks and OpenInvoice;

·    Integrated system functionality required by the State of Texas for
water disposal operators including: (i) electronic disposal ticket generation
in line with regulatory reporting requirements, (ii) aggregation of disposal
data as required for form P-18 and (iii) ability to complete monthly
allocation letters for hydrocarbon allocations to oil well owners; and

·    Nearing completion of the transition of the basic core application
from Elixir Code to Angular Code, which will allow for the continuation of
current functionality on a more scalable code base and allow for better
integration with other third-party SaaS offerings.

The release of the E-Ticketing solution in March 2024 is an important
milestone and the starting point for marketing efforts targeting large
commercial users of the platform such as Paloma Resources LLC and Diversified
Energy Company plc, both current users of OFXT's platform solution in certain
areas.

OFXT has also initiated expansion into the Texas market.  With 5.6 million
barrels of oil production per day (Source: U.S. Energy Information
Administration December 2023), Texas is the largest producer of crude oil in
the United States, estimated to produce approximately 43% of total U.S.
production.

OFXT reported unaudited revenue for the year-ending 2023 of US$118,000 ending
the year at an annualised revenue run rate of US$190,000.  With momentum from
the release of its E-Ticketing solution and expansion into the Texas market,
OFXT has reaffirmed its expectation of achieving operating cash flow
break-even by the end of 2024.

Following the completion of the transaction announced 29 November 2023 and
prior to 31 December 2023, OFXT issued 280,000 additional Class A Units.  ADM
did not exercise its option to acquire additional Class A Units and, as a
result, at year-end, ADM's economic and voting interests declined to
approximately 46.8% and 46.0%, respectively.

 

Change of Broker

The Company also announces that Cairn Financial Advisers LLP has been
appointed as broker to the Company with immediate effect.

 

Stefan Olivier, CEO of ADM Energy plc commented: "We are very pleased with the
progress that OFXT has made since completing our investment with respect to
both key software development milestones and positioning the business to enter
the Texas market, which we view as the key to achieving the revenue milestones
that we expect in 2024."

 

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 and Broker)
 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 an existing investment representing approximately 46.8% 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.

 

About OFX Technologies, LLC

OFXT is a revenue generating company which currently offers a free to download
mobile phone app supported on both iOS and Android platforms that is used to
track and manage produced water resulting from oil and gas operations and to
fulfil regulatory requirements associated with the disposal of oilfield
waste-water in the State of Louisiana as well as data storage requirements
necessary to comply with state regulations. OFXT's business model is to
provide Software-as-a-Service ("SaaS") with a near-term focus of expanding its
service offering to other U.S. states and add additional functionality to
increase average revenue per user.

 

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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