DGAP-News: ADM Energy PLC: Barracuda Field development update

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014 (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

12 April 2021

ADM Energy PLC
("ADM" or the "Company")

Barracuda Field development update

ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resources investing company, is pleased to announce it has entered into a non-binding collaboration agreement ("CA") with Eunisell Limited ("Eunisell"), the Nigerian owned oil and gas production solutions company.

Under the terms of the CA, subject to the completion of certain due diligence, ADM and Eunisell (the "Parties") will explore collaboration opportunities to carry out development of Barracuda Field in OML 141 and associated work-related activity in Nigeria (the "Project"). It is the intention of both parties, together with the risk sharing consortium in respect of Barracuda Field, that a formal agreement will be entered into in advance of any work commencing. The CA may be terminated by mutual consent.

Eunisell has decades of experience in engineering, production, operations and enhanced production techniques within Nigeria and the Parties intend to work together to use their combined experience to accelerate production of oil and gas assets, initially concentrating initiating production at the Barracuda field in which ADM recently invested. Activities under the intended scope of work may include early production facility supply, procurement, construction and commissioning of production facilities, extended well testing and laboratory services.

Following discussions, Eunisell may consider providing vendor financing to achieve the scope of work to be agreed, subject to terms and conditions to be determined at the point of an award of contract.

A further update will be made in due course.

Osamede Okhomina, CEO of ADM Energy plc, said: "The collaboration agreement with Eunisell, one of Nigeria's leading providers of oil field services and facilities, paves the way to bringing another high-class partner into the ADM fold. With a customer base in the region featuring oil and gas majors, Eunisell has been a key facilitator for the Nigerian oil and gas marketplace for many years, helping operators to reach their production goals faster and at less capital costs. We look forward to building a relationship and are excited by the potential of working alongside them to support the development of our investments such as the Barracuda Field in OML 141."

 

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About ADM Energy PLC

ADM Energy PLC (AIM: ADME; BER and FSE: P4JC) 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.
 

About Eunisell

For 25 years, Eunisell Production Solutions, has helped oil and gas producers achieve first oil revenues faster by delivering world-class technology and engineered improvements. Eunisell's customer base includes 90% of major oil and gas companies operating in the region.

Eunisell deliver services including: Production Facilities, Production Enhancement, Produced Water Solutions, Operations & Maintenance and Testing & Drilling Services into markets across the African continent - with a team of seasoned oil and gas professionals. The company's modern fleet is equipped with production management assets and support tools, operated by experienced operational staff with extensive experience in production enhancement and delivery.

Emphasis is placed on fast-tracking projects in order to achieve first oil and revenue generation sooner. http://www.eunisellproduction.com/


Forward-looking Statements

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions shareholders and prospective shareholder holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.
 

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