ADM Energy PLC (LON:ADME) has agreed to pay a US$250,000 deposit, in cash and shares, for its previously announced acquisition of an additional 2.25% interest in the OML 113 asset in Nigeria.
"Keeping to our stated plan, we have completed the second stage of this agreement with EER, taking us another step closer to concluding the transaction and increasing our position in OML 113, which is a high-quality asset,” Osamede Okhomina, ADM chief executive said in a statement.
"Despite the wider, global macroeconomic issues, we believe the longer-term outlook remains very positive within our market. We are focused on continuing to execute our strategy and are well placed to do so having recently strengthened our financial position," he added.
READ: ADM Energy says Nigeria operations remain largely uninterrupted
ADM is presently in the process of applying for the consent of the Nigerian Minister of Petroleum Resources for the transfer of the interest in OML 113 to ADM, taking completion closer.
Once complete, ADM’s participating stake in OML 113 will increase to 4.9% - with its revenue and cost bearing interests moving to 9.2% and 12.3%, respectively.
The company also noted, in Thursday’s statement, that it recently strengthened its balance sheet and cash position, and that operations at OML 113 remain largely uninterrupted during the coronavirus pandemic with production levels remaining stable.