Completion of Barracuda Field Transaction

Source: www.gulfoilandgas.com 4/28/2021, Location: Africa

Further to the announcement on 23 March 2021, ADM Energy PLC, a natural resources investing company, is pleased to announce 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 favourable accelerated economics and a 15% Net Profit Interest in the Field
· New work programme 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:
o Increase production to ca.23,000 bopd by drilling six wells by 2026
o Develop a 12km pipeline to Brass Export Terminal, reducing operating expenditure to US$12/bbl (from US$20/bbl)

Details of Payment
Following completion of the Investment, ADM has paid US$0.25 million (approximately £180,000) in cash and US$0.55 million (approximately £395,000) in ordinary shares at the price of 7p. As a result, ADM has issued 5,657,912 in ordinary shares of 1 pence each at 7 pence per share ("New Ordinary Shares"). The New Ordinary Shares are being issued to Calabar Capital Limited which, on admission of the New Ordinary Shares to trading on AIM, will hold 5,657,912 ordinary shares, representing 3.59 per cent. of the issued share capital of the Company. Calabar Capital Limited has entered into a lock-in agreement with the Company not to dispose of any shares issued to it in consideration for the investment for 12 months after the issue of any such consideration shares, save for in certain limited circumstances or upon the prior written consent of the Company.

The overall consideration for the Investment may total up to US$1.3 million payable in cash and equity. The remainder of the consideration is contingent on demonstrating commercial flow rates from the first new well, and payable as follows:
· US$0.1 million in ordinary shares of ADM issued at the higher of 7p and the five-day average of the then prevailing share price upon signing of drilling contract for the Barracuda-5 well
· US$0.4 million in ordinary shares of ADM issued at the higher of 7p and the five-day average of the then prevailing share price on completion of a successful flow test in respect of the Barracuda-5 well

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."

Admission to AIM and Total Voting Rights
Application will be made to the London Stock Exchange for the New Ordinary Shares, which will rank pari passu with the Company's existing Ordinary Shares, to be admitted to trading on AIM. Dealings in the New Ordinary Shares are expected to commence at 8.00 a.m. on or around 4 May 2021.

Following the issue of the New Ordinary Shares, the Company will have 157,580,862 ordinary shares of 1p each in issue. There are no ordinary shares are held in treasury. The figure of 157,580,862 may be used by the Company's shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Capitalised terms in this announcement shall have the meanings given to such terms in the Announcement at 07.00 a.m. on 23 March 2021.


Poland >>  5/6/2021 - With the closing of the agreement, which was first announced on 10 February 2021, PGE and Ørsted now each own 50% of the shares in the offshore wind p...
United Kingdom >>  5/6/2021 - Jersey Oil & Gas (JOG), an independent upstream oil and gas company ?focused on the UK Continental Shelf ("UKCS") region of the North Sea, is pleased ...

Brazil >>  5/5/2021 - Petro-Victory Energy has updated the market on the acquisition and closure of nine (9) onshore oil concessions in Brazil. This acquisition adds 63,583...
Poland >>  5/5/2021 - Equinor has completed an agreement to buy 100% of the shares in Polish onshore renewables developer Wento from the private equity firm Enterprise Inve...

United States >>  5/5/2021 - ALLETE Clean Energy, a wholly owned subsidiary of ALLETE, Inc., has acquired the Red Barn wind project and signed an asset sales agreement with WEC En...
Egypt >>  5/4/2021 - APA Corporation (APA) announced it has reached an agreement in principle with Egypt’s Ministry of Petroleum and Mineral Resources (MOP) and the Egypti...




Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.