First deal done – increased stake in OML 113
ADM received an early Christmas gift in December 2020, completing our agreement with EER (Colobus) Nigeria Ltd to acquire a further participating interest of 2.25% in OML 113. This deal consolidates our position in the Aje Field, a proven and versatile oil-producing asset offshore Nigeria, nearly doubling our net revenue, reserves and production. With the joint venture partners targeting three new wells in 2021, net daily production to ADM is projected to rise to as much as 1,000 barrels per day. This quality asset provides an excellent platform to build on and advance our pipeline of deals to grow our exposure to value accretive, high-quality assets. As part of ADM’s growth strategy, we continue to look for new asset opportunities across the West African region and are actively working on a number of deals, including as part of the Marginal Field Bid Round in Nigeria.
Ex-Shell veteran joins as CFO
ADM is delighted to welcome Lionel Therond as our new CFO. Lionel spent a decade at Royal Dutch Shell as an Exploration and Production Geoscientist, where he held international positions including a stint at Shell’s global headquarters in The Hague. His career includes 25 years in investment banking within the oil and gas sector, covering various roles. Lionel’s extensive experience will prove invaluable and assist our investment and acquisition strategy.
New broker appointed
We welcome Arden Partners as new lead broker to support us in reaching our goals. Arden subsequently released an initiation note earlier this month tipping ADM Energy as a ‘buy’ with a price target of 10p.
We expect a busy year for ADM in 2021 as the company pursues its Phase 2 Aje development and sets about bringing new assets into the portfolio. – Arden analyst Daniel Slater
14th cargo lifting at Aje Field
During the quarter we completed the 14th Lifting (“Lifting”) at the Aje Field. The Lifting totalled 557,091 barrels with a net share of 33,056 barrels to ADM, which equates to ADM’s paying interest of approximately 6%. The proceeds of the Lifting will be applied against the project debt, significantly reducing the outstanding balance. We expect to further benefit in the coming months now that we have increased our stake in the asset after concluding the EER transaction, and with a further improvement in the oil price forward curve.
Spotlight on Superdielectrics
With its highly disruptive patented technology, Superdielectrics is developing high energy density, low cost, low environmental impact, electrical energy storage devices that will help create a clean and sustainable global energy and transportation system. These materials could translate into game-changing, commercially viable products, and help solve the world’s renewable energy storage problem.
ADM Energy's investment in Superdielectrics
To support its development, Superdielectrics raised approximately £13 million in October 2020 in a financing round priced at £4.50 per share. Based on ADM’s average acquisition cost of £1.025 per share, this values our holding of 195,000 shares at £877,500, representing an uplift of over four times.
We are delighted with this significant uplift in value, as well as the progress and potential of Superdielectrics. We look forward to continuing to monitor its development as it goes from strength to strength.
And finally… out with the old, in with the new
As part of maintaining our engagement with all shareholders – no matter how big or small – we have launched a new website at www.admenergyplc.com offering improved functionality and access to information on the Company, including strategy, operations and all information required by AIM Rule 26.