ADM Energy PLC’s (LON:ADME) two deals last year have formed an excellent foundation for the oil junior’s future development said Osamede Okhomina, chief executive.
“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.”
ADM also recently extended its agreement with Trafigura, which, for the right project, will provide up to US$120mln of capital, while it raised £1.2mln in March 2021 to progress the Barracuda field.
“This progress puts us in a stronger position to focus our efforts on bringing on new production at Aje and Barracuda while continuing to assess opportunities to secure other value-accretive, high-quality assets at depressed valuations with considerable upside for our shareholders," said Okhomina.
Revenue in 2020 was £0.8mln (£2.5mln) due to fewer liftings from the Aje field, where ADM recently upped its interest to 9.2% from 5%, due to increased maintenance work while oil prices were low.
Net production was 36,295 barrels (2019:44,405).