ADM Energy Announces Internal Review of Aje Field Interest

Source: 12/1/2023, Location: Africa

ADM Energy PLC, a natural-resources investing company, announces that the Board of Directors have completed an internal review of existing investments, financial resources and future investment opportunities available to the Company. The key takeaways of this review include:

· The Board has concluded that opportunities available to it in energy technology, such as the OFX Technologies, LLC investment announced 29 November 2023, present a compelling path to growth in per share value and cash flow for the Company.
· As a result, the Board has resolved to consider alternatives for monetising its 12.3% cost share and 9.2% profit share interest in the Aje Field, OML-113 offshore Lagos, Nigeria.
· Alternatives to be considered by the Company for Aje include its sale, a joint-venture, farming-out or other such transactions.
· Among other alternatives to be considered, Energy Equity Resources (Nigeria), Ltd. ("EER"), a 16.8% cost share and 12.6% profit share partner in the Aje consortium, will work with the Company on potential alternatives involving third party financing to meet the requirements of both EER and the Company related to the Aje.
· The Board has resolved to hire a third-party adviser to manage the process of identifying and executing a potential transaction related to its interest in OML-113 and to discuss with its auditors any implications in respect of the classification of the Aje asset.

OML-113 Description and Recent Developments
The Company holds a 12.3% cost share and 9.2% profit share interest in OML-113 covering an area of 835km˛ offshore Nigeria, which includes the Aje Field. Aje, which has produced more than 5 million barrels of oil to date, is rich in gas and condensate reserves with multiple oil, gas, and gas condensate reservoirs in the Turonian, Cenomanian and Albian sandstones with five wells drilled to date. Based on ADM's 2019 Competent Persons Report, Aje represents 8.9 million barrels of oil equivalent resources with a mid-case PV-10% of US$25.9 million to ADM's interest based on a US$70 oil price scenario.

The decision by the Board to consider alternatives for monetising the Company's interest in Aje follows the acquisition by PetroNor E&P ASA ("PetroNor") of an additional 32.1% cost sharing and 24.1% profit share interest in OML-113 announced 3 October 2023. Under PetroNor's leadership, the Company and its consortium partners have been in dialog regarding plans to proceed to a final investment decision regarding the further development of Aje in 2024.

Additionally, the consortium has commenced reprocessing of 3-D seismic covering the Aje Field and a significant portion of the OML 113 license area offshore Nigeria. The reprocessing is near completion and fully reprocessed 3-D seismic is expected to be available for interpretation in early 2024.

The Board view these positive developments with respect to commercialising Aje as presenting a favourable time to initiate the process of partnering, financing or monetising its interest through sale of the asset with the objective of maximising value and freeing up capital to deploy into other projects in keeping with the focus of the Company on opportunities in energy related technologies.

Stefan Olivier, CEO of ADM Energy plc, said: "The investment in Efficient Oilfield Solutions, LLC announced 29 November 2023 is a pivotal strategic development representing a new focus for the Company away from capital intensive, long lead-time projects toward compelling opportunities with a clear path to cash flow in high growth energy technology and energy transition related opportunities."

"With recent interest by the German government in working with Nigeria to realise the potential of its massive natural gas reserves, Aje represents a de-risked asset that we believe will be attractive to a variety of strategic and financial investors. Along with the entire Board of ADM, I am committed to realising the potential of the Aje Field and the entire license area for ADM and its shareholders while re-deploying capital into the attractive energy technology opportunities available to the Company."

Australia >>  2/27/2024 - Woodside has achieved record production of 187.2 MMboe (513 Mboe/d) and excellent operated LNG reliability of 98%. We recorded full-year net profit af...
Norway >>  2/27/2024 - Please see below information about transactions made under the first tranche of the 2024 share buy-back programme for Equinor ASA (OSE:EQNR, NYSE:EQNR...

Norway >>  2/27/2024 - Highlights

- Strong operating revenues of USD 152.8 million.

- EBITDA was USD 93.6 million, compared to USD 127.0 million ...

Norway >>  2/27/2024 - HydrogenPro ASA (OSE: HYPRO): HydrogenPro has today reported its financial results for the fourth quarter.

Achievements and highlights of t...

Norway >>  2/27/2024 - Highlights

- Strong operating revenues of USD 152.8 million.

- EBITDA was USD 93.6 million, compared to USD 127.0 million ...

United Kingdom >>  2/27/2024 - Avenir LNG Limited (NOTC: AVENIR) is pleased to present its first management business update presentation to its shareholders. The company aims to pro...

Gulf Oil and Gas
Copyright © 2023 ICT All rights reserved. - Terms of Service - Privacy Policy.