DGAP-News

ADM Energy PLC: Investment in Barracuda Oil Field and Fundraise - Seite 4

HE Zubair Al Zubair, Chairman of Dubai Bridge Investments, said: "We partnered with ADM at the end of last year because their strategy aligned with our own of seeking out investment opportunities in the energy sector in Africa. The Barracuda Field, an attractive near-term production asset with significant potential upside, is the type of excellent opportunity we envisioned when we first decided to collaborate with ADM. Our planned financial backing combined with ADM's extensive contacts and breadth of experience of the region and the oil and gas industry forms a formidable partnership and we look forward to building a long-term relationship."

Background on Barracuda Field

The Barracuda field sits in OML 141, an oil mining licence area covering 1,295 km² in the swamp/shallow waters of the Niger Delta in Nigeria. Four existing wells drilled in 1967 (three wells by Tenneco) and 2007 (one well by CNOOC) penetrated oil-bearing high-quality C3 and D-1B sands typical of the stacked delta top and prodelta reservoirs in faulted listric settings common in this area. The plan is for a fifth well to be drilled (Barracuda-5) in order to carry out a flow test in Q4 2021 which, if successful, will be brought onstream. Subject to the assessment of pre-drilling studies, and agreement from ADM and DBI, it is the intention for the fifth well to be funded through a loan from existing funding partner DBI. Based on existing Barracuda data and field analogues, ADM estimates that it may be possible, which will be subject to production of the new CPR, to recover up to 73 million barrels from the D-1B reservoir alone with several other potential reservoir leads to be further appraised after initial production. In addition, ADM considers that there is a potential opportunity to further increase field productivity through the drilling of five additional wells over the coming years. Any development of the field will be subject to the receipt of the CPR, further and ongoing technical appraisal work, and funding.

Additional Information on the Fundraising and Bookbuild

The final number of new Ordinary Shares to be issued pursuant to the Fundraising (the "Fundraising Shares") will be determined following the close of the Bookbuild. The Fundraising Shares, when issued, will be fully paid and will rank pari passu in all respects with the existing ordinary shares.