09:38 Thu 10 Dec 2020
ADM Energy PLC - ADM completes EER Transaction
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
ADM Energy PLC
("ADM" or the "Company")
ADM completes EER Transaction following receipt of Ministerial Consent
ADM finalises deal to consolidate its interest in OML 113 and nearly double its net revenue, reserves and production
ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resources investing company, is pleased to announce that it has received ministerial consent from the Nigerian Minister of Petroleum Resources ("DPR") to complete the transfer of a participating interest of 2.25% in OML 113 (the "Block") from EER (Colobos) Nigeria Limited ("EER") to the Company.
Highlights
· ADM acquires 25% of the interests, rights and obligations held by EER in OML 113
· Participating interest in OML 113 will increase to approximately 4.9% from 2.7%
· Corresponding profit and cost bearing interests will increase from 5.0% to 9.2% and from 6.7% to 12.3% respectively
· Net 2P reserves increase to 16.4 MMboe from 8.9 MMboe (as announced on
· Net daily production is expected to rise to approximately 196 bopd from 106 bopd, based on current production
"This transaction aligns with our growth strategy and is typical of the type of deal we want to achieve to build value for ADM. We have gained a strong foothold in an oil field that we understand intimately. We have de-risked the asset through our technical expertise and working alongside high-quality partners. Having completed the transaction at a premium to our share price, we now stand to benefit by developing the field and unlocking the upside for shareholders. Building on this platform, we are focused on advancing the multiple other deals we are working on and growing our exposure to value accretive, high-quality assets.
"In addition, Hessia Group Limited, an existing investor in ADM and the beneficial holder of the Consideration Shares as part of the completion of this agreement, becomes the Company's largest shareholder and remains a long term and supportive holder of ADM shares."
Background
OML 113 covers an area of 835km² in the western
In
Details of Payment
The total consideration for the Agreement is
In
The Company has paid
As a result of the above, the total number of shares to be issued in respect of consideration for the Agreement ("Consideration Shares") is as follows:
Consideration Shares
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Convertible Loan Note
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The issue of the 24,739,940 Consideration Shares represents 20.15 per cent. of the enlarged issued share capital of the Company. As a result of the issue of the Consideration Shares, Hessia Group Limited, the beneficial holder of these Consideration Shares, will hold 28,982,636 ordinary shares representing an interest of 23.61 per cent. of the enlarged issued share capital of the Company.
Issue of New Ordinary Shares, Admission to Trading and Total Voting Rights
Following satisfaction of all other conditions other than admission, application has been made for 24,739,940 new ordinary shares to be admitted to trading on AIM ("Admission"). It is expected that admission of the shares will become effective and dealings will commence at
Following Admission, the Company's enlarged issued share capital will comprise 122,769,073 ordinary shares of
Related Party Transaction
Enquiries:
ADM Energy plc |
+44 20 7459 4718 |
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Cairn Financial Advisers LLP |
+44 20 7213 0880 |
(Nominated Adviser) |
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Arden Partners plc |
+44 20 7614 5900 |
(Lead Broker) |
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Hybridan LLP |
+44 20 3764 2341 |
(Joint Broker) |
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Oddo Seydler Bank AG |
+49 69 920540 |
(Designated Sponsor) |
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+44 20 7618 9100 |
(Financial PR) |
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Harry Chathli, |
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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
ADM Energy is seeking to build on its existing asset base in
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