ADM Completes Acquisition of Nigeria’s Barracuda Field

Monday, May 3, 2021

Further to the announcement on March 23, ADM Energy PLC announced it has completed its acquisition of a controlling interest in a Risk Sharing Agreement for the development of the large-scale Barracuda Field in OML 141 (the Field), an existing discovery and near-term production asset in swamp/shallow waters offshore Nigeria.

Highlights

• ADM acquires a 51% interest in K.O.N.H. UK Limited (“KONH”) (the “Investment”), which holds a 70% indirect interest in the rights, benefits and obligations under the RSA relating to the Barracuda area of OML 141
• ADM will provide technical and financial support to the RSA Consortium in return for favorable accelerated economics and a 15% Net Profit Interest in the Field
• New work program to be produced by the RSA Consortium and joint operators
• New CPR on the Field expected to be completed in the coming months
• ADM’s internal estimate suggests that first oil of 4,000 barrels of oil per day (bopd) may be possible in H2 2021
• ADM considers that there may be an opportunity to further increase Field productivity from further drilling. Following the receipt of the CPR and further technical appraisal work, it may be possible to:

• Increase production to ca.23,000 bopd by drilling six wells by 2026
• Develop a 12km pipeline to Brass Export Terminal, reducing operating expenditure to US$12/bbl (from US$20/bbl)

Osamede Okhomina, CEO of ADM Energy plc, said: “We are delighted to complete our investment and acquire a controlling interest in a Risk Sharing Agreement for the development of the Barracuda Field. The expectation is for Barracuda Field to come on stream later this year following the drilling of a new well, which, if successful, should give ADM a considerable increase in production volumes and cashflows. With the potential for several new wells in the coming years, we believe this investment and the Barracuda Field represents a compelling opportunity to add significant value to ADM.”

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