ADM Energy, an exploration and production company has concluded in increasing its investment interest in the Aje oil field offshore Nigeria. The company disclosed that it had reached an agreement with EER, a partner in the block to acquire a participating interest of 2.25% from EER in oil mining lease no. 113, in which it already has an interest of 2.7%. According to the acquisition agreement, $3,000,000, is to be satisfied by the issue of $2,000,000 of new ordinary shares at 7 pence per share while $1,000,000 will be in cash at the time of completion. On completion, ADM’s participating interest will increase to approximately 4.9% while Post completion, net daily production is expected to increase to approximately 273 bpd from 148 bpd. The company was operating at current average crude daily production of 2,967 bpd as at 2019 which is “As envisaged under the intended Strategic Alliance signed earlier this month, we have proposed this project as one Trafigura may consider investing in. We look forward to updating the market further in due course.” expected to increase from 148bpd to 273 bpd on completion. OML 113 covers an area of 858km² in the western Nigeria offshore Dahomey basin, some 24km south of the coast and 64km from Lagos, in water depths ranging from 100 to 1,000 meters. The West African Gas Pipeline (WAGP) intersects the northwest part of the license. “In keeping with our strategic development agenda, I am pleased to announce our first investment under the Company’s new leadership. OML 113 is well known to us and it is a fantastic asset that covers the spectrum of field types from current oil production to several appraisal plays. It is also very wet-gas rich which provides the potential for the operator to be able to bring into the market, alongside dry gas, resources like condensate and LPG. “As envisaged under the intended Strategic Alliance signed earlier this month, we have proposed this project as one Trafigura may consider investing in. We look forward to updating the market further in due course.” Osamede Okhomina, CEO of ADM, said.
