5th Aug 2024 12:02
(Alliance News) - ADM Energy PLC on Monday said its Texas subsidiary generated revenue as production commences at the first of three newly acquired wells.
In June, the London-based natural resource investor acquired 100% ownership of Vega Oil & Gas LLC, a Texas, US-focused company with three well assets in Moore County.
The transaction was funded by a USD150,000 capital commitment alongside a USD100,000 borrowing facility.
In June, the Sneed 415 well returned to production and produced 430 gross barrels of oil, with Vega receiving USD25,591 from oil sales during the month.
Equipment to develop a new tank battery to support future production from all three wells has now been purchased with completion due at some point in August.
Chef Executive Officer Stefan Olivier said: "We are pleased with the progress to date related to the Vega investment and look forward to returning the remaining two wells to production following completion of the tank battery."
ADM Energy shares are currently suspended pending publication of its 2023 annual report, last traded at 0.43 pence each on July 1.
By Elijah Dale, Alliance News reporter
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