TIDMADME
RNS Number : 6847D
ADM Energy PLC
30 June 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF EU REGULATION 596/2014 (WHICH FORMS PART OF
DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT
2018). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
30 June 2021
ADM Energy PLC
("ADM", the "Company" or the "Group")
Trading Update, Annual Report and Accounts
ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural
resources investing company, provides the following update on
trading and in relation to the publication of its Annual Report and
Accounts for the year to 31 December 2020.
Annual report and accounts
Due to the current COVID-19 situation, the Company will be
unable to post its annual audited accounts to shareholders for the
year to 31 December 2020 by the 30 June 2021 deadline pursuant to
AIM Rule 19. Further to the guidance provided in "Inside AIM" on 27
January 2021, the Company has requested an extension of its
reporting deadline, which has been granted, by up to three months
such that it may publish its annual report for the year to 31
December 2020 by 30 September 2021. The Company expects to publish
its annual report ahead of this date.
Trading update
The Company is today providing shareholders with an unaudited
update on trading of the Group for the year ended 31 December 2020,
details of which are set out as follows.
Investment Highlights
-- Increased revenue interest in Aje Field asset from 5% to 9.2%
by acquiring 25% of the interest, rights, and obligations held by
EER
o Total gross production volume decreased to 698,649 (2019:
890,203 bbls) barrels of oil in 2020 with 36,295* net to ADM (2019:
44,405 net to ADM), reflecting a decision from the JV Partners to
carry out a more thorough and extended period of maintenance on the
FPSO while oil prices were depressed
o 14(th) lifting in October 2020 totalled 557,091 barrels (ADM
net share of 33,056 barrels)
o Post period, 15(th) lifting in April 2021 for a total of
225,000 barrels, equating to an increased net share to ADM of
27,675 barrels post completion of the EER transaction
o Partners reduced operating costs at project level by 37.5% on
average, reducing breakeven cost of production to US$28 per
barrel
-- In January 2021, extended MOU with Trafigura Pte Ltd
("Trafigura") - intention to create a strategic alliance for
investment opportunities, with Trafigura providing conditional
financing of up to US$120m
-- In April 2021, acquired a controlling interest in a Risk
Sharing Agreement ("RSA") for the development of the large-scale
Barracuda Field. The overall consideration for the investment may
total up to US$1.3m payable in cash and equity
-- Strengthened the team with the following appointments:
o Lionel Therond, CFA, as CFO; and two Oil and Gas veterans,
Darrell McKenna and Dr Satinder Purewal, as advisory members to the
technical team
* Includes increase in revenue interest from 5% to 9.2% after 9
December 2020
Financial Summary
-- Unaudited Revenue was GBP0.8m (2019: GBP2.5m), reflecting a
reduction in production volumes, fewer Liftings in the period due
to COVID-19 and ADM's decision to not participate in the 13(th)
Lifting due to low oil prices at that time
-- Raised additional equity of GBP0.5m and debt of GBP0.4m in two fundraisings in 2020
-- Post period, raised GBP1,220,000 in an equity fundraising in March 2021
-- In May 2021, completed the sale of 188,778 shares in
Superdielectrics Ltd for a total consideration of GBP849,501, a
profit of GBP656,003.55 on ADM's original investment
-- Extended the terms of GBP200,000 Loan Facility signed in August 2020
Aje Field
ADM consolidated its interest in OML 113 during the year and
nearly doubled its net revenue, reserves and production share in
the asset. The Group increased its revenue interest from 5% to 9.2%
by acquiring 25% of the interest, rights, and obligations held by
EER (Colobos) Nigeria Limited ("EER"). This has increased ADM's
share of net 2P reserves from 8.9 MMboe to 16.4 MMboe with net
daily reserves, based on production at the time of the deal, rising
from 148 bopd to approximately 273 bopd.
Oil Production:
2020 2019
Gross 698,649 bbls 890,203 bbls
------------- -------------
1,909 bopd 2,967 bopd
------------- -------------
Net* 36,295 bbls 44,405 bbls
------------- -------------
99.2 bopd 148bopd
------------- -------------
* Includes increase in revenue interest from 5% to 9.2% after 9
December 2020
Due to the prevailing low oil price at the time, ADM elected to
not participate in the 13th lifting in March 2020. The Company
participated in the 14(th) lifting in October 2020, which totalled
557,091 barrels with a net share of 33,056 barrels to ADM. Post
period, the 15(th) lifting was completed in April 2021 for a total
of 225,000 barrels, equating to an increased net share to ADM of
27,675 barrels post completion of the EER transaction. The lower
production volumes were due to a decision from the JV Partners to
carry out a more thorough and extended period of maintenance on the
FPSO while oil prices were depressed.
The partners successfully reduced operating costs at project
level by 37.5% on average. As a result, the breakeven cost of
production was reduced to US$28 per barrel, comfortably below the
prevailing crude oil price. This ensured that Aje remained
profitable at a project level, even despite lower production
volumes and crude oil prices.
Barracuda Field
Post period, ADM acquired a controlling interest in a RSA for
the development of the large-scale Barracuda Field. ADM will
provide technical and financial support to the RSA Consortium in
return for favourable accelerated economics and a 15% Net Profit
Interest in the field. The Company's internal estimate suggests
that first oil of 4,000 bopd could be achieved in H2 2021 by
drilling an appraisal well (Barracuda-5). Xodus Group Ltd has been
commissioned to produce an updated Competent Person's Report
("CPR"). Subject to the outcome of the CPR and successful results
from the appraisal well, ADM believes it may be possible to
increase production at the Barracuda Field to approximately 23,000
bopd through drilling six wells by 2026.
Osamede Okhomina, CEO of ADM Energy, stated: "2020 has posed
unprecedented challenges due to COVID-19. We are pleased that our
operations continued in a safe and effective manner, while the
board managed to position the business for growth. We have
completed two significant deals that form an excellent foundation
for ADM's future development. We almost doubled our interest in the
Aje Field, enabling ADM to benefit from any future scale up in
production, and we acquired an indirect interest in a
near-production asset with favourable accelerated economics in the
Barracuda Field.
"ADM strengthened its technical and management teams to help
progress our existing assets and assess new opportunities, with the
appointments of highly experienced oil and gas specialists and
bringing in Lionel as CFO. In addition, the Company has extended
its agreement with Trafigura, which, for the right project, can
provide ADM with access to capital and, post period, we recently
raised capital which allows us to progress the Barracuda
opportunity and provide working capital for the Company. This
progress puts us in a stronger position to focus our efforts on
bringing on new production at Aje and Barracuda, while continuing
to assess opportunities to secure other value-accretive,
high-quality assets at depressed valuations with considerable
upside for our shareholders."
Enquiries:
ADM Energy plc +44 20 7459 4718
Osamede Okhomina, CEO
www.admenergyplc.com
Cairn Financial Advisers LLP +44 20 7213 0880
(Nominated Adviser)
Jo Turner, James Caithie
Arden Partners plc +44 20 7614 5900
(Lead Broker)
Paul Shackleton, Daniel Gee-Summons
Hybridan LLP +44 20 3764 2341
(Joint Broker)
Claire Louise Noyce
ODDO BHF Corporates & Markets AG +49 69 920540
(Designated Sponsor)
Michael B. Thiriot
Luther Pendragon +44 20 7618 9100
(Financial PR)
Harry Chathli, Alexis Gore, Joe Quinlan
About ADM Energy PLC
ADM Energy PLC (AIM: ADME; BER and FSE: P4JC) is a natural
resources investing company with an existing asset base in Nigeria.
ADM Energy holds a 9.2% profit interest in the oil producing Aje
Field, part of OML 113, which covers an area of 835km(2) offshore
Nigeria. Aje has multiple oil, gas, and gas condensate reservoirs
in the Turonian, Cenomanian and Albian sandstones with five wells
drilled to date.
The Company also holds an investment in the development of the
Barracuda Field, an existing discovery and near-term production
asset in the NW part of OML 141, which covers 103 km(2) in the
swamp/shallow waters of the Niger Delta. Four existing wells have
been drilled to date and a fifth is intended to be drilled in Q4
2021.
ADM Energy is seeking to build on its existing asset base in
Nigeria and target other investment opportunities across the West
African region in the oil and gas sector with attractive risk
reward profiles such as proven nature of reserves, level of
historic investment, established infrastructure and route to early
cash flow.
, the news service of the London Stock Exchange. RNS is approved by
the Financial Conduct Authority to act as a Primary Information
Provider in the United Kingdom. Terms and conditions relating to
the use and distribution of this information may apply. For further
information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTDZGFVMGZGMZM
(END) Dow Jones Newswires
June 30, 2021 07:45 ET (11:45 GMT)
Adm Energy (LSE:ADME)
Historical Stock Chart
From Mar 2024 to Apr 2024
Adm Energy (LSE:ADME)
Historical Stock Chart
From Apr 2023 to Apr 2024