ADM Energy plc, an oil and gas investing company quoted on AIM, announces its audited full year results for the year ended 31 December 2019.
OML 113 Investment Highlights
Aje Field asset in OML 113 continued to perform well:
- Oil is being produced at a stable rate from two wells in the Aje Field (Aje-4 and Aje-5ST2)
- Two wells achieved a total produced volume of 890,203 barrels of oil in 2019
- Combined average barrels of oil per day from the two wells of 2,967 bopd (148 bopd net to ADM)
- Field Development Plan for the Turonian Aje gas project is in the initial planning stages with the partners, aimed at tripling production to 9,000 bpd
- An increase in reserves outlined by the Competent Person's Report updated in April 2019
- Aje partnership fully paid the $9.8m licence renewal fee, securing a 20-year extension of the OML 113 licence
Financial and Corporate Highlights
- Revenue was £2.5m (2018: £3.1m)
- Loss after tax £1.7m (2018: £1.0 loss)
- Successfully raised additional equity of £2.0 million in three fund raisings in 2019
- Strengthened Board and Management team with the following appointments:
- Osamede Okhomina as CEO in July 2019
- Peter Francis as Non-Executive Chairman and Manuel Lamboley as Non-Executive Director in October 2019
- In February 2020, entered into an agreement with EER (Colobos) Nigeria Limited to increase its revenue interest in OML 113 from 5% to 9.2%, significantly increasing ADM's net 2P reserves from 8.9 MMboe to 16.4 MMboe, expected to complete in Q3 2020
- Signed MoU in February 2020 with Trafigura Pte Ltd for strategic alliance to develop investment opportunities in the African energy sector
OML 113 operational costs reduced by 37.5% - break even reduced to US$28 per barrel
- In H1 2020, raised £250k in two fundraisings for working capital and converted £152k of debt to equity
- In June 2020, added dual listings on the Berlin and Frankfurt stock exchanges to support growth and broaden investor base
Osamede Okhomina, CEO of ADM Energy, stated: "2019 was an important year to lay the foundation for our growth strategy which is focused on highly accretive 2P reserves assets in West Africa along with our quality producing asset at the Aje Field. We have made excellent progress at Aje with operations continuing largely uninterrupted despite COVID-19. We reached an agreement to increase our stake from 5% to over 9%, brought break even costs down to $28 per barrel, and with plans to triple production from 3,000 bpd to 9,000 bpd in 2021 and thus we believe we have set an excellent foundation upon which to drive our growth strategy expand our investment portfolio.
"COVID-19 has undoubtedly had a big impact on global markets, but as economies re-open around the world we are beginning to see an upturn in oil prices from previous lows, our strategy firmly remains to increase 2P reserves and production, ADM is well positioned to take advantage of the recovery. Furthermore, as upstream majors continue to seek exit strategies in West Africa, greater opportunities are emerging at low and attractive valuations, even more so in the current macro environment.
"In addition, ADM shares were recently admitted to trade on the Frankfurt and Berlin Stock Exchanges, which will further increase the visibility of ADM Energy's shares in continental Europe and enable us to build relationships with a wider group of new investors, this dual listing is intended to compliment , our main quotation which is on the AIM Market of the London Stock Exchange where our core investors trade. "