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ADM to Acquire a Further Interest in OML 113
ADM to Acquire a Further Interest in OML 113.
About this update from Adm Energy Plc
[{"type":"text","content":"\n \n \n RNS Number : 8251D\n ADM Energy PLC\n 24 February 2020\n \n \n \n \n THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.\n \n \n \n \n \n 24 February 2020\n \n \n \n \n \n ADM Energy PLC \n \n \n \n \n \n (\"ADM\" or the \"Company\") \n \n \n \n \n \n ADM to Acquire a Further Interest in OML 113 from EER\n \n \n \n \n \n ADM Energy PLC (AIM:ADME), an oil and gas investing company quoted on AIM, is pleased to advise that it has entered into a sale and purchase agreement (\"Agreement\") with EER (Colobus) Nigeria Limited (\"EER\") to acquire, subject to satisfaction of certain conditions, a participating interest of 2.25% from EER in oil mining lease no. 113, which includes the Aje field (\"Block\"), in which it already has an interest of 2.7%. Consideration for the acquisition is $3,000,000, to be satisfied by the issue of $2,000,000 of new ordinary shares at 7 pence per share (\"Consideration Shares\") and $1,000,000 in cash at the time of completion. \n \n \n \n \n \n Highlights of the Agreement\n \n \n · \n ADM will acquire 25% of the interests, rights and obligations held by EER in the Block subject to conditions\n \n \n · \n On completion, ADM's participating interest will increase to approximately 4.9%\n \n \n · \n Corresponding revenue and cost bearing interests increasing to 9.2% and 12.3% respectively\n \n \n ·\n Upon completion, ADM's net 2P reserves will increase from 8.9 MMboe (as announced on 2 May 2019) to 16.4 MMboe\n \n \n · Post completion, net daily production is expected to increase to approximately 273 bopd from 148 bopd \n \n \n Background\n \n OML 113 covers an area of 858km² in the western Nigeria offshore Dahomey basin, some 24km south of the coast and 64km from Lagos, in water depths ranging from 100 to 1,000 metres. The West African Gas Pipeline (WAGP) intersects the northwest part of the licence. There are currently five partners in the licence: Yinka Folawiyo Petroleum Company Limited, New Age Exploration Nigeria Limited, Pan Petroleum Aje Limited, EER and ADM.\n \n \n \n \n Interest in OM...