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ADM Energy shares rise as new partner enters OML 113 asset

ADM boss Osamede Okhomina described the transaction between third-parties as a "strong endorsment" of the Nigerian asset and its viability.

Offshore oil platform
The Aje field hosts multiple oil and gas reservoirs

ADM Energy Plc (LON:ADME) shares advanced over 7% in Wednesday’s early deals as the firm relayed the news of a deal related to its 5% owned Nigerian oil asset OML 113.

Panoro Energy has agreed a deal to sell its 6% interest in OML 113, host to the Aje field. The 6% stake represents a responsibility for 16% of the asset’s costs and 12% of the economic benefit.

Independent oil and gas group PetroNor E&P is picking up Panoro’s stake in return for US$10mln worth of shares and a possible US$25mln deferred cash payment subject to future production results.

READ: ADM unveils £832,000 raise to appraise West Africa opportunities

The deal has some value read-through for ADM given the AIM-quoted firm’s stake in the asset.

"PetroNor entering the Aje project and taking a lead role in its future development is a strong endorsement of the viability of the asset and its significant potential upside,” said Osamede Okhomina, ADM Energy chief executive.

“With its extensive offshore technical experience in oil and gas exploration, development and production, PetroNor can help bring near-term production growth and take Aje to the next stage of its development."

ADM shares were up 4% at 6.11p giving the natural resources investor a market value of just £3.65mln.

Quick facts: ADM Energy Plc

Price: 4.6 GBX

AIM:ADME
Market: AIM
Market Cap: £2.74 m
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