Business
Energy Technology Investment
Energy Technology Investment.
About this update from Adm Energy Plc
[{"type":"text","content":"\n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014 (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.\n \n \n29 November 2023\n \nADM Energy PLC\n(\"ADM\" or the \"Company\")\n \n \nEnergy Technology Investment\n \nADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural-resources investing company, is pleased to announce that, in line with its Investing Policy and its announcement of 14 November 2023, it has made a further investment in an energy technology company focused on providing technology solutions to the upstream sector of the U.S. oil and gas business.\n \nHighlights\n· Acquisition of approximately 53.1% economic interest in OFX Technologies, LLC (\"OFXT\") 100% owner of Efficient Oilfield Solutions, LLC, a revenue generative, technology company focused on delivering technology solutions that increase efficiency, lower costs and aid in the management of regulatory requirements of the U.S. upstream oil and gas industry (\"the Investment\")\n· Total Maximum Consideration of US$1,285,000 comprised of the issue of 86,035,489 new ordinary shares at 1p each; 39,959,017 3-year, 1p warrants and US$235,000 in cash. \n· The Total Maximum Consideration implies a value of OFXT of approximately US$2.3 million or 4.5x the annualised monthly recurring revenue target of OFXT for the end of Q1 2024.\n· This oilfield technology investment positions the Company to take advantage of the rapid growth in technology spending by the upstream industry. Barclays cited in an article from Oilprice.com in April 2023 estimated upstream technology spending at US$30 billion by 2025, up over 6x from 2020 levels.\n· Subscription of US$225,000 of the amended Secured Convertible Loan Notes (as announced on 14 November 2023) and US$10,000 previously funded by the Company will fully fund the Company's cash commitments associated with the investment.\n· The investment is consistent with the mandate of new non-executive Chairman Lord Henry Bellingham to position ADM with investments focused on technologies ...