ADM Energy PLC (AIM:ADME, XETRA:P4JC) has upped its economic interest in Vega Upstream JV, to 25% from 10%, increasing its expected revenue exposure to the Midcon oil and gas acquisition ahead of a revised closing date later this month.
The AIM-listed natural resources investor made an additional US$200,000 investment in the joint venture, taking its cumulative contribution to US$300,000.
ADM said the increased interest is expected to raise average monthly revenue to about US$96,000 over the next 12 months, from US$72,400.
Executive director Randall J. Connally said the company was continuing work to complete the acquisition while planning a work programme to implement immediately, adding that he saw opportunities to “increase production, lower costs and leverage the assets to create new streams of revenue and cash flow”.
The Midcon assets include operated interests in 28 natural gas, NGL and oil wells in Custer County, Oklahoma, non-operated interests in around 250 wells across Oklahoma, and a gas gathering system transporting about 4.4mln cubic feet per day.
