DGAP-News

ADM Energy PLC: Investment in Barracuda Oil Field and Fundraise - Seite 3

o Develop a 12km pipeline to Brass Export Terminal, reducing operating expenditure ("Opex") to US$12/bbl (from US$20/bbl)

• The completion of the CPR alongside further technical appraisal work will assist ADM to appraise whether the Company may, in future, wish to seek an equity participation in the Field

Investment Consideration

• Consideration for the Investment may total up to US$1.3m payable in cash and equity, of which up to US$0.4m is contingent on demonstrating commercial flow rates from the first new well, and payable as follows:

o US$0.25m in cash at completion
o In three share instalments, distributable as follows:

• US$0.55m in ordinary shares of ADM issued at the higher of 7p and the then prevailing share price at completion
• US$0.1m in ordinary shares of ADM issued at the higher of 7p and the five-day average of the then prevailing share price upon signing of drilling contract for the Barracuda-5 well
• US$0.4m in ordinary shares of ADM issued at the higher of 7p 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

Osamede Okhomina, CEO of ADM Energy plc, said: "This is a compelling investment opportunity that provides ADM with the potential to access near-term production upside at minimal risk. The Barracuda Field in OML 141 fits our strategy to target near-term production assets in proven oil and gas jurisdictions and will establish ADM Energy as a multi-asset player in Nigeria. We will bring technical and financial support to the consortium to develop the asset and take it into production in the second half of this year. We have structured the deal to receive an accelerated cash entitlement once the field is in production, with the intention that the cost of the first well will be supported by our financing partner, Dubai Bridge Investments."