24th Feb 2020 14:00
(Alliance News) - Oil & gas investor ADM Energy PLC on Monday said it will acquire a further 2.3% stake in Nigerian oil mining lease No 113, which includes the Aje field, for USD3 million.
The acquisition will see ADM acquire 25% of the interests, rights and obligations held by oil & gas company EER Colobus Nigeria Ltd, bringing its total interests in the oil field to 5%.
The acquisition will be satisfied by the issue of USD2 million worth of shares at 7 pence each and USD1 million in cash. ADM noted that corresponding revenue and cost bearing interests will increase to 9.2% and 12%, respectively.
Following completion of the acquisition, net daily production is expected to increase to around 273 barrels of oil per day, up from 148 barrels.
"I am pleased to announce our first investment under the company's new leadership. OML 113 is well known to us and it is a fantastic asset that covers the spectrum of field types from current oil production to several appraisal plays. It is also very wet-gas rich which provides the potential for the operator to be able to bring into the market, alongside dry gas, resources like condensate and liquified petroleum gas," said ADM Chief Executive Osamede Okhomina.
ADM shares were trading 1.6% lower at 4.43 pence each on Monday afternoon in London.
By Ife Taiwo; [email protected]
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