ADM Energy PLC: Barracuda Field Collaboration Agreement

DGAP-News: ADM Energy PLC / Key word(s): Agreement
21.04.2021 / 08:00
The issuer is solely responsible for the content of this announcement.

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.

21 April 2021

ADM Energy PLC
(“ADM” or the “Company”)

Barracuda Field Collaboration Agreement

ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resources investing company, is pleased to announce it has entered into a non-binding collaboration agreement (“CA”) with OES Energy Services Limited (“OES”), Nigeria’s largest swamp rig services provider, and 4Mation Drilling Services Limited (“4Mation”), a solution provider in the energy sector.

ADM, OES and 4Mation (the “Parties”) plan to explore opportunities to develop Barracuda Field in OML 141 and associated work-related activity in Nigeria (“the Project”). It is the intention of the Parties, together with the risk sharing consortium in respect of Barracuda Field, that a formal agreement will be entered into in advance of any work commencing. The CA may be terminated by mutual consent.

Subject to any potential formal agreement, the intention is for OES to provide the swamp drilling rigs required for the Project. 4Mation would provide a variety of project management services including well engineering services, technical personnel, security and logistics.

In addition, OES and 4Mation may consider providing vendor financing to achieve the scope of work to be agreed, subject to terms and conditions to be determined at the point of an award of contract.

Osamede Okhomina, CEO of ADM Energy plc, said: “The RSA partners continue to build a high-quality circle of specialist partners to facilitate the development of the Barracuda Field. These agreements are important steps in ensuring we are ready to deliver on our drilling plans later in the year, which will bring the project on stream and significantly ramp up our production volumes.”

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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 835km² 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 has also agreed an investment in the development of the Barracuda Field, an existing discovery and near-term production asset in OML 141, which covers 1,295 km2 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.

About OES Energy Services Limited

OES Energy Services Limited (OESL) is Nigeria’s largest indigenous drilling contractor and a leading provider of energy services to exploration and production companies in Nigeria. By focusing on innovative technology, world class safety practices and personnel competence, OESL offers its clients high quality support for its operations that translates to increased efficiency and lower operating costs for its clients. Since its inception, OESL has invested over US$450 million in the acquisition refurbishment and upgrade of swamp rigs.

About 4Mation Drilling Services Limited

4mation drilling services, head office in Lagos, Nigeria, was established under the vision of oil and gas industry experts with over 35 years’ experience in the field. 4mation drilling services is poised to be the premiere solution provider in the energy sector. 4mation’s mission is to research and provide knowledge-based quality services to our clients, exceeding their expectations. 4mation render project management and advisory, training and human capital development, heavy duty logistics, renewable energy and general consultancy in the energy sector. With innovation and creativity, plus out-of-the-box thinking 4mation are able to tread untrodden paths and to bring satisfaction to clients.

Forward-looking Statements

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company’s current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as ‘anticipates,’ ‘expects,’ ‘intends,’ ‘plans,’ ‘believes,’ ‘seeks,’ ‘estimates,’ and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company’s control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions shareholders and prospective shareholder holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.
 

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21.04.2021 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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