Adm Energy Plc · LSE:ADME
Adm Energy — Investor Presentation (May 2020)
18 slides from Adm Energy's investor presentation, May 2020
Slide 1: Corporate Presentation May 2020
CORPORATE PRESENTATION May 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: Contents
Contents Executive Summary 4 Our People: Experienced Board 5 Growth Strategy to Deliver Shareholder Value 6 Why Nigeria A compelling investment jurisdiction 7 Nigerian Gas Monetisation 8 Our Asset: OML 113 10 Investment Approach 11 Investment Rationale: Production & Reserves Increase 12 Summary 13 C
Slide 4: Executive Summary
Executive Summary West Africa Oil & Gas: AIM-listed O&G investment company seeking to expand existing asset base in the region Balanced approach: Identifying assets with correct risk-reward profiles and route to early cash flow OML 113: 5% profit interest in the oil producing Aje Field in Oil Mining
Slide 5: Our People: Experienced Board
Our People: Experienced Board Osamede (Osa) Okhomina, Chief Executive Officer Peter Francis, Non-Executive Chairman • 20+ years’ experience in the global O&G industry, particularly • 35+ years experience working with major international oil in Africa, financing projects and growing businesses compan
Slide 6: Growth Strategy to Deliver Shareholder Value
Growth Strategy to Deliver Shareholder Value Growth Strategy Preferred Asset Classes Build a larger, balanced portfolio of investments: utilising a range of deal structures and participating in • Appraisal Assets: which have been explored disposal processes by US IOCs and super-majors and have littl
Slide 7: Why Nigeria - A Compelling Investment Jurisdiction
Why Nigeria - A Compelling Investment Jurisdiction Africa’s largest economy Sub-Saharan Africa’s largest and (31st in the world), GDP of $397 billion (2018), projected to reach 11th largest globally, remaining $874 billion by 20221 proven oil reserves Well-established, mature oil and gas basin exist
Slide 8: Nigerian Gas Monetisation
Nigerian Gas Monetisation Gas demand continues to grow in West Africa as gas is becoming a "replacement fuel" for more expensive diesel Gas prices are stable and de-coupled from Oil 8
Slide 9: 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 10: Our Asset – OML 113 (Aje Field) Field Development Plans
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 11: Investment approach
Investment approach ADM has already successfully implemented this approach to acquire value investments International Trading Partners • The Company's primary approach is to • The major oil traders have become de-facto financiers for many acquisitions, "option" appraisal assets where oil and gas how
Slide 12: Investment Rationale: Production & Reserves Increase
Investment Rationale: Production & Reserves Increase • Discounted acquisition into an underdeveloped producing Figure 5: Front Puffin FPSO Onsite Figure 6: Production Facilities asset with significant oil, NGL and gas upside • Gross 2P reserves of 138.2 mmboe (based on AGR TRACS 2019 CPR – appendix
Slide 13: Summary
Summary Creating shareholder value through expansion of asset base in West Africa, capitalising on drive for local participants across the resources sector and the push for oil and gas reform in Nigeria. Well positioned to take advantage of current market conditions and buy reserves cheaply – target
Slide 14: For information, please contact
For information, please contact: hello@admenergyplc.com 60 Gracechurch Street, London, EC3V 0HR Telephone: +44 (0)207 786 3555 14
Slide 15: Appendix – 1: 2019 AGR TRACS Competent Persons Report
Appendix – 1: 2019 AGR TRACS Competent Persons Report 15
Slide 16: Corporate Snapshot
Corporate Snapshot Exchange Ticker Share Price Market Cap. Shares in Issue Warrants in Issue Nomad Lead Broker Joint Broker Cairn Financial AIM ADME 2.34p £1.73m 74,325,239 21,816,268 Fox Davies Capital Pello Capital Advisers Shareholder Shares % of total • Partners renewed license for additional 20
Slide 17: Selected Africa Upstream Precedent Transactions
Selected Africa Upstream Precedent Transactions • Limited M&A activity over the last 3 years with an average of US$6 -8/boe paid for 2P reserves (pure play gas assets have traded at US$2-4/boe) Source: Wood Mackenzie; publicly available information (Nov 2019) 17
Slide 18: New Partner in OML 113 – PetroNor Acquire Panoro's Stake
New Partner in OML 113 – PetroNor Acquire Panoro’s Stake Technical Operator • A decade of experience operating in Nigeria through different ventures since 2009, PetroNor acquired Panoro’s 6.502% participating interest with 16.255% cost bearing interest in OML 113 (representing an economic interest o