ADM Energy PLC (LON:ADME) clarified the structure through which it invested in the Barracuda oil field in Nigeria.
In a brief statement, the company noted that its investment was made with an acquisition of a 51% interest in K.O.N.H. UK Ltd, which in turn holds a 70% stake in the Barracuda risk sharing agreement (RSA).
It also stated that there are no defined option rights attached to the RSA.
In May, the venture partners commissioned consultant Xodus Group Ltd to undertake an updated competent person's report (CPR) to assess the Barracuda field. The new CPR is expected to take four to six weeks to complete.
The CPR is seen by the company as a potential springboard to develop the Barracuda field and take the asset into production.
ADM eyes production at around 4,000 barrels of oil per day (bopd) initially, by the end of 2021, before a larger development which could lift volumes to around 23,000 bopd.