ADM Energy adds Barracuda to growing menu of opportunities
- ADM Energy appoints Oliver Andrews as chairman
- Stockbroker eyes ADM Energy upside ahead of Aje and Barracuda programmes
- ADM Energy' new Chairman Oliver Andrews plans to seize 'unprecedented opportunity' in sector
Quick facts: ADM Energy PLC
Price: 2.45 GBX
Market Cap: £3.86 m
About the company
ADM Energy is a natural resources investing company with an existing asset base in Nigeria in the Aje Field, part of OML 113. Aje has multiple oil, gas and gas condensate reservoirs in the Turonian, Cenomanian and Albian sandstones with five wells drilled to date.
ADM Energy is targeting investment opportunities across West Africa in the oil and gas sector with attractive risk reward profiles such as proven nature of reserves, level of historic investment, established infrastructure, route to early cash flow.
How it is doing
ADM Energy PLC (AIM:ADME), a West-Africa focused natural resources investor, said non-executive chairman Peter Francis will step down for personal reasons on August 2 and that Oliver Andrews will take over the role on the same date.
Andrews was formerly chief investment officer at the Africa Finance Corp, one of the biggest investors in natural resources and infrastructure solutions in Africa. There he oversaw the growth of assets under management from US$1bn to more than US$8.4bn, including significant investments in the oil and gas sector.
"I am delighted to welcome Oliver as the new chairman of ADM Energy,” said chief executive Osamede Okhomina. “Oliver is a prominent figure in the African natural resources scene having run one of the continent's largest investment funds as chief investment officer and overseen the development of several landmark projects.
“His extensive experience in originating and evaluating transactions, as well as financing and developing projects, will provide invaluable insight. I look forward to Oliver's guidance as he supports our strategy to unlock the upside from our asset base while seeking attractive new opportunities.”
“We almost doubled our interest in the Aje Field, enabling ADM to benefit from any future scale-up in production, and we acquired an indirect interest in a near-production asset with favourable accelerated economics in the Barracuda Field.”
Completion of a new CPR is the next step in the agreed scope of the Barracuda risk sharing agreement and the independent report is expected to provide a full technical and economic review of the field.
What the brokers say
With a price target of 14p the stockbroker sees some 324% upside, to the current price of 3.3p, as the company advances the Aje field and Barracuda project in Nigeria. The cash injection supports those growth projects which are due to ramp up in the coming months.
ADM, in a statement on Thursday, said it had received £849,501 from the sale of shares in Superdielectrics Ltd, realising a profit of around £656,000 on its original investment.
What management says
Andrews will take up the position from Peter Francis, who is stepping down from the role for personal circumstances.
The new chairman talks through his experience, with over 35 years’ experience in infrastructure development, investing, public-private partnerships and strategic advisory work such as advising and partnering with governments, regional and international corporations and development finance institutions.
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