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Thursday, December 10, 2020
ADM Energy PLC announced that it has received ministerial consent from the Nigerian Minister of Petroleum Resources (“DPR”) to complete the transfer of a participating interest of 2.25% in OML 113 (the Block) from EER (Colobos) Nigeria Limited (EER) to the Company.
Highlights
Peter Francis, Non-Executive Chairman of ADM Energy plc, said: “The completion of this deal consolidates our position in the Aje Field, a proven and versatile oil producing asset offshore Nigeria. We nearly double our share of revenue, reserves and net production, and with the joint venture partners targeting three new wells in 2021, net daily production to ADM is projected to rise to as much as 1,000 barrels per day.
“This transaction aligns with our growth strategy and is typical of the type of deal we want to achieve to build value for ADM. We have gained a strong foothold in an oil field that we understand intimately. We have de-risked the asset through our technical expertise and working alongside high-quality partners. Having completed the transaction at a premium to our share price, we now stand to benefit by developing the field and unlocking the upside for shareholders. Building on this platform, we are focused on advancing the multiple other deals we are working on and growing our exposure to value accretive, high-quality assets.
“In addition, Hessia Group Limited, an existing investor in ADM and the beneficial holder of the Consideration Shares as part of the completion of this agreement, becomes the Company’s largest shareholder and remains a long term and supportive holder of ADM shares.”
Yinka Ogundare, CEO of EER, said: “We are very pleased to deepen our ties with ADM by concluding this transaction. Their expertise and access to funding will help the partners to move forward with plans to increase oil production at the Aje Field and monetize the rich gas and liquids reserves.”
The complete ADM release can be found at this link.
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