DGAP-News 142 0 Kommentare ADM Energy PLC: Investment in Barracuda Oil Field and Fundraise - Seite 2

The Bookbuild will open with immediate effect following release of this announcement. A further announcement confirming the closing of the Bookbuild and the number of new ordinary shares to be issued pursuant to the Fundraising is expected to be made in due course.

Investment Highlights

ADM will acquire a 51% interest in KONH following the completion of the Investment, expected in Q2 2021
KONH holds, through its subsidiary Noble Hill - Network Limited ("NHNL"), a 70% indirect interest in the rights, benefits and obligations under the RSA relating to the Barracuda area of OML 141
The RSA represents a type of service contract commonly used in the Nigerian oil and gas industry by which NHNL will be compensated in cash out of profits (calculated based on agreed-upon measures and outcomes) generated from development of the Field
ADM will provide technical and financial support to the investors in NHNL (the "RSA Consortium") in return for favourable accelerated economics:

o The RSA Consortium intends to provide or procure funding for all upcoming capital expenditure ("Capex") subject to the joint operators' approval to develop the Field, in return for 235% of approved Capex to be recovered plus a 15% Net Profit Interest ("NPI") from the field
o Post return of invested capital to the RSA Consortium, the RSA Consortium remains entitled to the NPI throughout the life of the Field
o The RSA also grants the RSA Consortium an option to acquire a participating interest in the OML 141 Licence

New work programme to be produced by the RSA Consortium and joint operators
As part of the existing agreed scope of work, the RSA Consortium has undertaken to commission a CPR. The new CPR report is expected to be completed within the next few months. NHNL has advised the Company that a previous CPR prepared by Ryder Scott (2016) has indicated P50 resources of 1.3 billion barrels of oil in place from two sand reservoir intervals (subject to the production of a new CPR)
These reservoirs are similar to the high-quality reservoir in the Nembe Creek field which is located near the Barracuda field and has estimates of over 1 billion barrels of oil in place
The Barracuda field has four existing wells drilled and it is intended that a fifth well will be drilled in Q4 2021 - the intention is that ADM's financing partner Dubai Bridge Investments LLC ("DBI") may fund certain development costs of the Investment (terms and conditions are still to be finalised)
ADM's internal estimate suggests that first oil of 4,000 barrels of oil per day ("bopd") may be possible in H2 2021 - ADM will test this estimate as part of its technical appraisal work which it intends to conduct in due course
ADM considers that there may be an opportunity to further increase Field productivity from further drilling. Following the receipt of the CPR and further technical appraisal work, it may be possible to: