ADM Energy adds Barracuda to growing menu of opportunities

ADM Energy is a natural resources investing company with an existing asset base in Nigeria in the Aje Field, part of OML 113. Aje has multiple oil, gas and gas condensate reservoirs in the Turonian, Cenomanian and Albian sandstones with five wells drilled to date.

ADM Energy is targeting investment opportunities across West Africa in the oil and gas sector with attractive risk reward profiles such as proven nature of reserves, level of historic investment, established infrastructure, route to early cash flow.

() chief executive Osamede Okhomina said the company ended the year with a solid foundation for future growth.

Okhomina, in ADM’s results for the twelve months ended December 31 2020, highlighted the group’s progression during what was a challenging period due to the pandemic and low oil prices.

“The dramatic drop in oil prices presented an opportunity to acquire attractive assets at substantially depressed valuations, such as our increased interest in OML 113,” Okhomina said.

“We nearly doubled our share of 2P reserves and production from the Aje Field in advance of development plans to significantly increase production by drilling new wells.

(), a West-Africa focused natural resources investor, said non-executive chairman Peter Francis will step down for personal reasons on August 2 and that Oliver Andrews will take over the role on the same date.

Andrews was formerly chief investment officer at the Africa Finance Corp, one of the biggest investors in natural resources and infrastructure solutions in Africa. There he oversaw the growth of assets under management from US$1bn to more than US$8.4bn, including significant investments in the oil and gas sector.

‘s () two deals last year have formed an excellent foundation for the oil junior’s future development said Osamede Okhomina, chief executive.

“We almost doubled our interest in the Aje Field, enabling ADM to benefit from any future scale-up in production, and we acquired an indirect interest in a near-production asset with favourable accelerated economics in the Barracuda Field.”

Arden has repeated a ‘buy’ recommendation for () following Thursday’s news that the company realised a profit on a renewable energy investment.

With a price target of 14p the stockbroker sees some 324% upside, to the current price of 3.3p, as the company advances the Aje field and Barracuda project in Nigeria. The cash injection supports those growth projects which are due to ramp up in the coming months.

ADM, in a statement on Thursday, said it had received GBP849,501 from the sale of shares in Superdielectrics Ltd, realising a profit of around GBP656,000 on its original investment.

ADM Energy’s () Osamede Okhomina introduces their new chief engineer to Proactive London.

Dr Babatunde Pearse will be responsible for planning the next phase of the Aje development and overseeing the FEED (“Front End Engineering Design”) studies.

These will define the project requirements for detailed engineering, procurement and construction of facilities to support the Final Investment Decision.