ADM Energy PLC (LON:ADME) announced the completion of its transaction to acquire an additional 2.25% interest in OML 113.
The company’s stake in the project increases to 4.9% as a result of the transaction. The corresponding profit and cost bearing interests increase to 9.2% and 12.3% respectively.
Its net share of production is expected to rise to 196 barrels of oil per day, from 106 bopd.
“The completion of this deal consolidates our position in the Aje Field, a proven and versatile oil producing asset offshore Nigeria,” said Peter Francis, ADM chairman.
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“We nearly double our share of revenue, reserves and net production, and with the joint venture partners targeting three new wells in 2021, net daily production to ADM is projected to rise to as much as 1,000 barrels per day.
“This transaction aligns with our growth strategy and is typical of the type of deal we want to achieve to build value for ADM.”
Francis added: “We have gained a strong foothold in an oil field that we understand intimately.
“We have de-risked the asset through our technical expertise and working alongside high-quality partners.
“Having completed the transaction at a premium to our share price, we now stand to benefit by developing the field and unlocking the upside for shareholders. Building on this platform, we are focused on advancing the multiple other deals we are working on and growing our exposure to value accretive, high-quality assets.”
