ADM Energy PLC says 15th lifting completed at Nigeria’s Aje Field

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ADM Energy PLC (LON:ADME) announced it has completed the 15th lifting at the Aje Field, part of OML 113 offshore Nigeria.

The investing company said the lifting totalled 225,000 barrels as 52,000 barrels were left in the tank, while its net share will be 27,675 barrels equating to its paying interest of 12.3%.

READ: ADM Energy shares tipped for 276% upside as broker assesses Barracuda

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 joint venture partners to carry out a more thorough and extended period of maintenance on the FPSO while oil prices were depressed.

This ensures the joint venture partners can take full advantage of the assets production levels going forwards, while benefiting from the subsequent uplift in oil prices, the AIM-listed firm said.

The proceeds of the lifting will be applied against the project debt, significantly reducing the outstanding balance.

The joint venture 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,” said ADM’s chief executive Osamede Okhomina.

“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.”

Shares rose 2% to 3.82p on Tuesday afternoon.

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