Business
Update on acquisition of further OML 113 interest
Update on acquisition of further OML 113 interest.
About this update from Adm Energy Plc
[{"type":"text","content":"\n \n \n RNS Number : 8405M\n ADM Energy PLC\n 14 May 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 14 May 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 Update on acquisition of further interest in OML 113 \n \n \n \n \n \n \n Payment of \n \n USD$250,000 \n \n acquisition deposit agreed\n \n \n \n \n \n \n ADM Energy PLC (AIM: ADME), an oil and gas investing company quoted on AIM, is pleased to announce it has reached agreement with EER (Colobus) Nigeria Limited (\"EER\") for the immediate payment, in cash and shares, of the USD$250,000 deposit due as part of the sale and purchase agreement to acquire a further interest of 2.25% in oil mining lease no. 113 (\"OML 113\") from EER (\"the Agreement\") announced on 24 February 2020. \n \n \n \n \n \n KEY POINTS:\n \n \n \n · Payment of USD$250,000 deposit in cash and shares as part of the sale and purchase agreement\n \n \n \n · ADM is in the process of applying for the consent of the Nigerian Minister of Petroleum Resources for the transfer of the interest from EER to ADM, which takes the Company closer to completing the Agreement\n \n \n \n · Subject to completion of the Agreement (\"Completion\"), ADM's participating interest in OML 113 will increase to 4.9% with corresponding revenue and cost bearing interests increasing to 9.2% and 12.3% respectively\n \n \n · \n Recently strengthened balance sheet and cash position following\n \n Loan Facilities Agreement, Directors' Subscriptions and Debt Conversion, as reported on 27 April 2020 \n \n \n · \n Operations at OML 113 remain largely uninterrupted, with production levels remaining stable\n \n \n \n \n \n Osamede Okhomina, CEO of ADM, said: \"Keeping to our stated plan, we have completed the second stage of this agreement with EER, taking us another step closer to concluding the transaction and increasing our position in OML 113, which is a high-quality asset.\n \n \"Despite the wider, global macroeconomic issue...