ADM Energy PLC (AIM:ADME, ETR:P4JC) has raised a total of £475,000 through a share placing, to boost working capital as the company assesses a number of new investment opportunities.
Some 31.6mln new shares are being issued at a placing price of 1.5p, and participating investors will also receive a total of 6.6mln share warrants exercisable at 3p each.
It comes as the company works to identify and evaluate high-quality assets in West Africa at depressed valuations with substantial upside for shareholders.
"This fundraise will help us continue our strategy of pursuing investment opportunities that can add significant value to ADM Energy. We are assessing several prospects and remain in regular dialogue with our partners, such as Trafigura, to examine financing options for attractive investment opportunities in high-quality assets,” said chief executive Osamede Okhomina.
“While transactions of this nature take time, we have been encouraged by both the quality of the assets in question and the progress of our discussions.”
ADM also provided an update on the progression of the Aje field in Nigeria, where the joint venture group is advancing towards a final investment decision on a new multi-phase development plan for the field. It is focussed on the addition of two new oil wells and a gas injector which would boost production volumes to around 9,000 barrels of oil and liquids per day.
The company noted that a review of the field has concluded that the existing subsea hardware infrastructure is able to be used for the new wells, subject to a confirmatory integrity inspection, and it highlighted that this would provide significant cost savings compared to installing additional subsea infrastructure.
“The field development plans at Aje are advancing and it is pleasing that our latest findings indicate that the existing infrastructure can be used to supply the two new wells, lowering the cost of development without impacting the expected potential increase in production,” Osamede Okhomina added.
“With Panoro and PetroNor agreeing a further one-month extension to the end of November for the Aje transaction, we await the conclusion of that deal which, once finalised, is expected to accelerate Aje's development."
Elsewhere, the company noted that its technical team continues to assess the draft of a preliminary technical report from the competent person for the Barracuda field, in the Niger Delta offshore Nigeria – the technical report is required for the company to finalise the proposed development plans.
ADM said it expects to make a further update to the market regarding Barracuda field before year end.