30th Sep 2019 15:38
(Alliance News) - ADM Energy PLC on Monday said it remains on track to become cash flow positive in the first half of 2020 after reporting a sharp year-on-year rise in first half revenue, helped by continued stable production at Aje oil field in Nigeria.
The oil and gas focused investment company, which has a 5% equity investment in Aje field, said revenue for the six months to June 30 more than doubled to GBP2.2 million from GBP968,000 a year ago. As a result, pretax loss narrowed to GBP448,000 from GBP1.1 million.
The revenue rise was primarily attributed to two oil lifts at Aje field versus one lift in the same period a year ago. The company also was able to reduce its administrative expenses by 26% year-on-year to GBP511,000.
ADM Energy declared no interim dividend, the same as last year. Cash and cash equivalents stood at GBP84,000 at period-end, down slightly from GBP94,000 a year ago.
"During this period, there have been two liftings and sales from Aje which continues to produce at a stable rate. The revenues generated from the Aje Field means ADM Energy remains on track to become cash flow positive in H1 2020, subject to continued production, sustained oil prices and no unforeseen expenditure at the asset level. Our confidence in the Aje Field has been enhanced, particularly by the partners' renewal of the production licence for a further twenty years, and discussions are taking place for further development drilling in 2020," said Chief Executive Officer Osamede Okhomina.
"We continue with our plans to build a larger investment portfolio of undervalued projects by leveraging on our extensive network across Africa and originating deals for appraisal, development and producing assets. The board looks forward to the future with confidence," Okhomina added.
ADM Energy shares were down 1.0% at 4.85 pence each in London on Monday afternoon.
By Tapan Panchal; [email protected]
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