DGAP-News 142 0 Kommentare ADM Energy PLC: Investment in Barracuda Oil Field and Fundraise

DGAP-News: ADM Energy PLC / Key word(s): Investment
ADM Energy PLC: Investment in Barracuda Oil Field and Fundraise

23.03.2021 / 08:00
The issuer is solely responsible for the content of this announcement.

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.

23 March 2021

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

Investment in Development of Barracuda Oil Field, Nigeria and Fundraise

Further to the announcement on 18 February 2021, ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resources investing company, is pleased to announce that it has conditionally agreed to invest in the development of the Barracuda oil field (the "Field") in OML 141, an existing discovery and near-term production asset in swamp/shallow waters offshore Nigeria. The investment will be made by way of an acquisition of a 51% interest in K.O.N.H. UK Limited ("KONH") (the "Investment"), which holds an indirect interest in a Risk Sharing Agreement ("RSA") for the Field.

Consideration for the Investment may total up to US$1.3m, of which US$0.25m is to be settled in cash on completion and the balance is to be settled in equity, at the higher of 7p and the then prevailing share price, on completion and on satisfaction of certain project milestones.

The Company intends to raise approximately US$0.5m in cash by way of a subscription, for new ordinary shares to, inter alia, provide funding for the Investment (the "Fundraise"). The subscription will be effected by way of an accelerated bookbuild (the "Bookbuild"), at a price of 4.25 pence per new ordinary share (the "Subscription Price").

As part of the Fundraise, the Company intends to enter into subscription agreements with investors and certain of its directors and PDMRs pursuant to which they will subscribe for new ordinary shares (the "Subscription Shares") at the Subscription Price (the "Subscription"). The Fundraise is conditional on admission of the new ordinary shares pursuant to the Fundraise to trading on AIM.