ADM Energy PLC (AIM:ADME, ETR:P4JC) shares started Tuesday higher, rising 10% at one point, as the micro-cap oil and gas firm was boosted by a third-party transaction in Nigeria.
Norwegian firm PetroNor E&P has agreed to buy out New Age from the OML 113 asset, host to the Aje field, for US$6 million upfront plus up to $20 million of future contingent payments (subject to field performance).
It is PetroNor’s second such deal in the asset, ADM highlighted in a statement, following a prior transaction last year for Panoro Energy’s stake.
PetroNor meanwhile noted that it is working with project operator Yinka Folawiyo Petroleum to create a jointly owned company which will hold their combined interests in the project, which will represent 71% of the economic interests.
ADM, which retains a 9.2% profit interest in the field, said in a statement that it welcomes PetroNor’s acquisition and that it looks forward to working toward "re-initiation of development activity".
“Aje is a highly attractive, geologically de-risked asset which has produced more than 5 million barrels of oil,” ADM chief executive Stefan Olivier said in a statement.
"With the acquisition by PetroNor of Panoro's interest in 2022, PetroNor's partnership with YFP Deepwater and now consolidation of the New Age interest - PetroNor is now in position to provide the strong and capable leadership that Aje requires."