ADM Energy PLC, a natural resources investing company, has announced the completion of the 15th Lifting at the Aje Field, part of OML 113 offshore Nigeria.
The Lifting totaled 225,000 barrels (52,000 barrels were left in the tank) with a net share of 27,675 barrels to ADM, which equates to ADM’s paying interest of approximately 12.3%. The nominated offtake partner for the Lifting was La Chorale, a global energy & commodity trading company. The temporary drop in volume from the previous Lifting announced in October 2020, reflects a decision from the JV Partners to carry out a more thorough and extended period of maintenance on the FPSO while oil prices were depressed. This ensures the JV Partners can take full advantage of the assets production levels going forwards, while benefiting from the subsequent uplift in oil prices.
The proceeds of the Lifting will be applied against the project debt, significantly reducing the outstanding balance. The JV Partners remain in discussion in respect of project level debt and any potential mitigating actions and associated reduction in project overheads and the Company will update the market once an agreement has been reached.
ADM Energy holds a 9.2% profit interest in the Aje Field and this is the first lifting since the Company finalised an agreement in December 2020 to consolidate its interest in the asset. Covering an area of 835km² offshore Nigeria, Aje is an oil producing asset rich in gas and condensate reserves and currently has two producing wells, Aje-4 and Aje-5.
We are delighted to carry out the 15th lifting, the first since we increased our holding in the Aje Field, which nearly doubled our share of revenue, reserves and net production. Given our increased stake, exciting development plans for Aje, and potential further improvement in the oil price forward curve, we are well positioned to further benefit from future liftings from this quality asset,” Osamede Okhomina, CEO of ADM Energy plc, said: “
ADM Energy PLC is a natural resources investing company with an existing asset base in Nigeria. ADM Energy holds a 9.2% profit interest in the oil producing Aje Field, part of OML 113, which covers an area of 835km² offshore Nigeria. Aje has multiple oil, gas, and gas condensate reservoirs in the Turonian, Cenomanian and Albian sandstones with five wells drilled to date.
The Company has also agreed an investment in the development of the Barracuda Field, an existing discovery and near-term production asset in OML 141, which covers 1,295 km2 in the swamp/shallow waters of the Niger Delta. Four existing wells have been drilled to date and a fifth is intended to be drilled in Q4 2021.
ADM Energy is seeking to build on its existing asset base in Nigeria and target other investment opportunities across the West African region in the oil and gas sector with attractive risk reward profiles such as proven nature of reserves, level of historic investment, established infrastructure and route to early cash flow.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310.
