Adm Energy Plc · LSE:ADME
Adm Energy — Investor Presentation (October 2020)
26 slides from Adm Energy's investor presentation, October 2020
Slide 1: Corporate Presentation
Corporate Presentation October 2020
Slide 2: Disclaimer
Disclaimer The information contained in this confidential document (“Presentation”) has been prepared by ADM Energy plc. (“ADM Neither the issue of this Presentation nor any part of its contents is to be taken as any form of offer for or solicitation to Energy” or the “Company”). It has not been ful
Slide 3: Presentation Team
Presentation Team Osamede (Osa) Okhomina Chief Executive Officer • 20+ years’ experience in the global O&G industry, particularly in Africa, financing projects and growing businesses • Appointed CEO of ADM Energy in July 2019 Peter Francis Non-Executive Chairman • 35+ years’ experience working with
Slide 4: Executive Summary
Executive Summary West Africa Oil & Gas: AIM-Quoted O&G investment company seeking to expand existing asset base in the region. Increasing stake in Aje project: Acquisition to increase 2P reserves from 8.9 MMboe to 16.4 Mmboe. OML 113: 5% profit interest in the oil producing Aje Field in Oil Mining
Slide 5: Corporate Snapshot and Experienced Management Team
Corporate Snapshot and Experienced Management Team
Slide 6: Corporate Snapshot
Corporate Snapshot Shares in Warrants in Investment Corporate Designated Exchanges Tickers Share Prices Market Cap. Lawyers Nomad Brokers Issue Issue Bankers Bankers Sponsor Cairn Hybridan LLP AIM,FSE,BER ADME,P4JC 4.75p,5.2c £4.6M/€5.1M 98,029,133 26,656,723 RSF Capital Locke Lord Oddo Barclays Fin
Slide 7: Our People: Experienced Board & Senior Management
Our People: Experienced Board & Senior Management Osamede (Osa) Okhomina Peter Francis Chief Executive Officer Non-Executive Chairman • 20+ years’ experience in the global Oil & Gas • 35+ years’ experience working with major industry, particularly in Africa, financing projects international oil comp
Slide 8: Our People: Experienced Technical Advisors
Our People: Experienced Technical Advisors Dr Satinder Purewal Wilhelmus (Wim) Burgers Petroleum and Reservoir Engineering Lead Geologist and Geophysical Lead • 38+ years’ Reservoir engineering experience for many large Oil and Gas field developments • 30+ years’ experience in Oil and Gas industry w
Slide 9: H1 2020 Summary and OML Update
H1 2020 Summary and OML Update
Slide 10: H1 2020 Summary
H1 2020 Summary • Investment in Aje • Operations largely unaffected by COVID-19 • Wells (Aje-4 and Aje-5) producing at an average of 2,126 bopd (106 net to ADM) • Anticipate increase in production in H2 2020 following temporary drop in H1 2020 due to FPSO maintenance • Aje operational costs reduced
Slide 11: Post-Period 2020 Summary
Post- Period 2020 Summary • Strengthened board - appointment of Sir Henry Bellingham and Dr Stefan Liebing as NED’s • Strengthened the technical team - appointments of former Shell and ExxonMobil veterans, Dr Satinder Purewal and Darrell McKenna • Successfully pre-qualified and subsequently submitte
Slide 12: Our Asset – OML 113 (Aje Field)
Our Asset – OML 113 (Aje Field) Asset Operation Updated and Historical Production OML 113 – Aje Field License Location Good quality reservoir with high grade oil sold at a premium to Brent Plans to expand into gas production • Covers 858km², located in relatively shallow waters off Nigeria 11km to t
Slide 13: Our Asset – OML 113 (Aje Field)
Our Asset – OML 113 (Aje Field) Phases 1 and 2 Field Development Plans (“FDP”) Aje Oil Development – diagrammatic representation Approved by Nigerian Government FPSO (Water depth approx. 100m) Phase 1 (Completed): • Initial two-well Cenomanian oil project. • Water depth of 300 meters for both rig op
Slide 14: Production & Reserves Increase
Production & Reserves Increase • Discounted acquisition into an underdeveloped Front Puffin FPSO Onsite Production Facilities producing asset with significant oil, NGL and gas upside • Gross 2P reserves of 138.2 MMboe (based on AGR TRACS 2019 CPR – appendix 2) • Acquisition value: − Profit interest
Slide 15: Why Nigeria, Growth Strategy & Investment Approach
Why Nigeria, Growth Strategy & Investment Approach
Slide 16: Why Nigeria - A Compelling Investment Jurisdiction
Why Nigeria - A Compelling Investment Jurisdiction Sub-Saharan Africa’s largest and Africa’s largest economy 11th largest globally, remaining proven oil reserves GDP of $448 billion (2019) Well-established, mature oil and gas basin 37.5bn existing midstream assets and infrastructure Africa’s largest
Slide 17: Growth Strategy & Preferred Asset Class
Growth Strategy & Preferred Asset Class Growth Strategy Preferred Asset Classes Build a larger, balanced portfolio of investments: utilising a range of deal • Appraisal Assets: which have been structures and participating in disposal explored and have little by way of processes by US IOCs and super-
Slide 18: Investment approach
Investment approach ADM has already successfully implemented this approach to acquire value investments International Trading Partners • The major oil traders have become de-facto financiers for many acquisitions, however often struggle to find partners with the necessary credibility to • The Compan
Slide 19: Outlook
Outlook Investment in Aje • Expected to double interest in Aje by end of 2020 • Strategic decision to delay next lifting and store oil positions ADM to benefit from any oil price rises • Next lifting expected in October 2020 • Asset still profitable at current prices due to cost cutting measures • P
Slide 20: Appendix
Appendix
Slide 21: Unaudited Consolidated Statement of Comprehensive Income
Appendix 1 - UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2020 Unaudited Unaudited 6 months 6 months Audited ended ended Year ended 30 June 30 June 31 December 2020 2019 2019 £’000 £’000 £’000 Continuing operations Revenue 2,171 2,519 Operating costs
Slide 22: Unaudited Consolidated Statement of Financial Position
Appendix 1 - UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020 Unaudited Unaudited Audited 30 June 30 June 31 December 2020 2019 2019 £’000 £’000 £’000 NON-CURRENT ASSETS Development costs 16,212 16,403 15,708 16,212 16,403 15,708 CURRENT ASSETS Investments held for trading 2
Slide 23: Unaudited Consolidated Statement of Changes in Equity
Appendix 1 - UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2020 Reserve for Exchange translation Total Share Share Shares to Reserve for warrants Retained capital premium be issued options granted issued reserve deficit equity £’000 £’000 £’000 £’000 £’000 £’
Slide 24: Unaudited Consolidated Statement of Cash Flows
Appendix 1 - UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2020 Unaudited Unaudited 6 months 6 months Audited ended ended Year ended 30 June 30 June 31 December 2020 2019 2019 £’000 £’000 £’000 OPERATING ACTIVITIES Loss for the period (975) (448) (1,673) Adjustments
Slide 25: Appendix 2: 2019 AGR TRACS Competent Persons Report
Appendix – 2: 2019 AGR TRACS Competent Persons Report MMboe = Million barrels of oil equivalent MMbopd = Million barrels of oil per day Bscf = Billion standard cubic feet Tcf = Trillion cubic feet For information, please contact: hello@admenergyplc.com 60 Gracechurch Street, London, EC3V 0HR Telepho
Slide 26: Group Advisors
Group Advisors % BARCLAYS lutherpendragon WW Cairn RSF CAPITAL PARTNERS Locke Lord ODDO SEYDLER HYBRIDAN ‘YOUR PARTNER FOR GROWTH Pello Capital 2 6