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ADM Energy PLC: Completion of Barracuda Field Transaction - Seite 2
o Develop a 12km pipeline to Brass Export Terminal, reducing operating expenditure to US$12/bbl (from US$20/bbl)
Details of Payment
Following completion of the Investment, ADM has paid US$0.25 million (approximately £180,000) in cash and US$0.55 million (approximately £395,000) in ordinary shares at the price of 7p. As a result, ADM has issued 5,657,912 in ordinary shares of 1 pence each at 7 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 US$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 follows:
- US$0.1 million 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$0.4 million 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: "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."
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