REG - ADM Energy PLC - OFXT Operations Update

Adm EnergyAnnouncement

10/04/2025 07:00

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RNS Number : 4104E  ADM Energy PLC  10 April 2025

10 April 2025

 

 

ADM Energy PLC

 

("ADM" or the "Company")

 

OFXT Operations Update

 

ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), an AIM-listed natural resource
investing company, is pleased to provide the following update with respect to
its investment in OFX Technologies LLC ("OFXT"), and its subsidiary, Efficient
Oilfield Solutions LLC ("EOS"), the revenue generating software-as-a-service
("SaaS") company focused on delivering technology solutions that increase
efficiency, lowering costs and aiding in the management of regulatory
requirements of the U.S. upstream oil and gas industry. The Company has a
42.2% economic interest in OFXT.

Highlights

§ Major New Client: EOS has signed a service agreement with the subsidiary of
a major independent oil and gas company, Comstock Resources, Inc. (NYSE: CRK)
focused on Haynesville Shale, as a new corporate client to its technology
platform; and

§ Strategic Review: ADM has resolved to work with the management of OFXT to
review the strategic options available to EOS which may include a full or
partial sale of the business, in order to maximise its value for ADM
shareholders.

OFXT Operations Update

The Company, through its 42.2% economic interest in OFXT, the parent company
of Efficient Oilfield Solutions, has exposure to the developing digitisation
and data analysis of oilfields; a high growth, world-wide trend, recognised by
major financial institutions and strategic consulting firms.  The
digitisation efforts include enhanced data collection, automation, record
storage and management, and the application of internet-of-things ("IoT") and
Artificial Intelligence ("AI") in the upstream industry.

The Company is pleased to announce that EOS has executed a service agreement
with a subsidiary of Comstock Resources, Inc., an independent oil and gas
company listed on the New York Stock exchange (NYSE: CRK) with an approximate
market capitalization of US$5.0 billion, focused on developing the Haynesville
Shale in North Louisiana and East Texas.

EOS's monthly recurring revenue, pro-forma, including the new service
agreement, is approximately US$40,000 per month.  In addition to expanding
its customer base for its existing offerings, EOS is exploring additional
functionality for its platform including IoT and Artificial Intelligence
enhanced services to further increase the value proposition and cost savings
to its clients. EOS intends to continue to grow its retained client base and
achieve recurring revenue of US$100,000 per month by the end of 2026.

Strategic Review of EOS

According to SaaS Capital LLC, an Ohio, USA based financial institution, U.S.
private Business-to-Business ("B2B") SaaS company valuations, analysed on its
'SaaS Capital Index' have achieved a median of 7x annualised run-rate
recurring revenue and have stabilized in the range of 6-7x annualised
recurring revenue 1  (#_ftn1) .

Informed by the attractive valuation metrics afforded to B2B SaaS companies
and with a desire to see EOS achieve the potential that the management of EOS
and ADM's Board believe exists for the business, the Board of ADM have
resolved as follows:

"The Board of Directors of ADM Energy PLC has resolved to work with the
management of OFX Technologies, LLC and its subsidiary, Efficient Oilfield
Solutions, LLC, to seek ways to support the growth of EOS and realise value
for ADM shareholders. The Company may explore opportunities to monetise EOS in
order to achieve its potential and distribute value to ADM shareholders via a
sale, merger, spin-out, investment by strategic or venture capitalist
investors or other potential transaction."

Commenting on the recent developments, Randall Connally, CEO, said:

"The addition of a subsidiary of Comstock Resources, Inc., a multi-billion
NYSE-listed energy company, to the subscriber base of EOS, substantiates the
value proposition that EOS brings to the oil industry and the viability of the
technology platform in the marketplace.

"As EOS continues to develop, the Directors believe that the attractive
multiples of annualised recurring revenue, afforded B2B SaaS companies, may
create a situation where the implied value of ADM's stake in EOS might offer
the Company an attractive opportunity to monetise a part, or the whole of the
value of the asset. The Board will continue to evaluate the opportunity to
realise the value for shareholders at the appropriate time."

 

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                                       +1 214 675 7579
 Randall Connally, Chief Executive Officer
 www.admenergyplc.com (http://www.admenergyplc.com/)

 Cairn Financial Advisers LLP                         +44 207 213 0880
 (Nominated Adviser)
 Jo Turner

 Liam Murray

 Ed Downes

 Novum Securities Limited                             +44 207 399 9400
 (Broker)
 Gavin Burnell
 Colin Rowbury

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

 

About ADM Energy PLC

ADM Energy PLC (AIM: ADME; BER and FSE: P4JC) is a natural resources investing
company with investments including a 100% interest in Vega Oil and Gas; a
41.4% economic interest in JKT Reclamation, LLC; a 42.2% 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 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.

About Efficient Oilfield Solutions, LLC

Efficient Oilfield Solutions, LLC ("EOS") is a SaaS company, offering a mobile
phone app supported on both iOS and Android platforms that uses QR-code
technology to track and manage produced water resulting from oil and gas
operations. This technology assists companies to meet regulatory requirements
associated with the disposal of produced water and relevant data storage
requirements, necessary to comply with state regulations in both Texas and
Louisiana.

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.

 1  (#_ftnref1) 2025 Private SaaS Company Valuations - SaaS Capital
(https://www.saas-capital.com/blog-posts/private-saas-company-valuations-multiples/)

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