New Telegraph

OML 141: Investor pays $0.25m for oil field offshore Nigeria

Further to the announcement made on March 23, 2021, ADM Energy, a natural resources investing company, said it had completed its acquisition of a controlling interest in a risk sharing agreement for the development of the large-scale Barracuda Field in OML 141 (the “Field”), an existing discovery and near-term production asset in swamp/shallow waters offshore Nigeria. Following completion of the investment, ADM has paid $0.25 million (approximately £180,000) in cash and $0.55 million (approximately £395,000) in ordinary shares at the price of seven pence.

As a result, ADM has issued 5,657,912 in ordinary shares of one penny each at seven pence per share (“New Ordinary Shares”). The new ordinary shares are being issued to Calabar Capital Limited, which, on admission of the new ordinary shares to trading on AIM, will hold 5,657,912 ordinary shares, representing 3.59 per cent of the issued share capital of the company. Calabar Capital Limited has entered into a lock-in agreement with the company not to dispose of any shares issued to it in consideration for the investment for 12 months after the issue of any such consideration shares, save for in certain limited circumstances or upon the prior written consent of the company. The overall consideration for the investment may total up to $1.3 million payable in cash and equity.

The remainder of the consideration is contingent on demonstrating commercial flow rates from the first new well, and payable as $0.1 million in ordinary shares of ADM issued at the higher of seven pence and the five-day average of the then prevailing share price upon signing of drilling contract for the Barracuda-5 well $0.4 million in ordinary shares of ADM issued at the higher of seven pence and the five-day average of the then prevailing share price on completion of a successful flow test in respect of the Barracuda-5 well. The CEO of ADM Energy, Osamede Okhomina, said: “We are delighted to complete our investment and acquire a controlling interest in a risk sharing agreement for the development of the Barracuda Field.

The expectation is for Barracuda Field to come on stream later this year following the drilling of a new well, which, if successful, should give ADM a considerable increase in production volumes and cashflows. With the potential for several new wells in the coming years, we believe this investment and the Barracuda Field represents a compelling opportunity to add significant value to ADM.” Concerning admission to AIM and total voting rights, an application will be made to the London Stock Exchange for the new ordi-nary shares, which will rank pari passu with the company’s existing ordinary shares, to be admitted to trading on AIM. Dealings in the new ordinary shares were expected to commence at 8.00 a.m. on or around May 4, 2021.

Following the issue of the new ordinary shares, the company will have 157,580,862 ordinary shares of one penny each in issue. There are no ordinary shares held in treasury. The figure of 157,580,862 may be used by the company’s shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the company under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

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