viewADM Energy PLC

ADM Energy completes Barracuda acquisition

The company eyes field production of around 4,000 bopd in the near term.

Admiral Group - ADM Energy completes Barracuda acquisition

ADM Energy PLC (LON:ADM) completed the acquisition of a controlling interest in a Risk Sharing Agreement for the development of the large-scale Barracuda Field, in OML 141 located in swamp and shallow water offshore Nigeria.

The company now owns a 51% interest in the K.O.N.H. UK Limited vehicle which in turn owns 70% of Barracuda.

It will provide technical and financial support to the consortium and will receive favourable accelerated economic terms plus a 15% net profit interest in the field.

READ: ADM inks collaboration deals for Barracuda

The consortium partners will conduct a fresh work programme and a new competent persons report is expected in the coming months. Looking ahead to the second half of 2021, the company said its own internal estimates indicate production of around 4,000 barrels per day may be possible.

Moreover, ADM noted that there may be opportunity to further increase field productivity from further drilling. 

In the longer term, a development comprising six wells could yield around 23,000 bopd supported by a 12 kilometre pipeline.

To acquire the interest in Barracuda the company paid £180,000 (US$250,000) and £395,000 (US$550,000) in shares, priced at 7p each. Future contingent payments may see the total deal consideration rise up to US$1.3mln.

Quick facts: ADM Energy PLC


Price: 2.5 GBX

Market Cap: £3.93 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...


ADM Energy' new Chairman Oliver Andrews plans to seize 'unprecedented...

ADM Energy PLC (AIM:ADME)'s (LON:ADME) Oliver Andrews joins Proactive London after being appointed to the board as non-executive Chairman. 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...

on 2/8/21

2 min read