OML 113 is well known to us and it is a fantastic asset that covers the spectrum of field types from current oil production to several appraisal plays.
Osamede Okhomina, ADM Energy chief executive
What it owns
Newly refocussed, restaffed and re-energised – ADM Energy Plc (LON:ADM has emerged out of the remains of the MX Oil vehicle and its attentions are initially pointed on the OML 113 asset, which includes the Aje field.
Aje has multiple oil, gas and gas condensate reservoirs.
ADM seeks to build on this initial asset base through other investment opportunities across the West African region in the oil and gas sector.
A transaction with Nigerian firm EER sees the company increase its stake in OML 113, adding a 2.25% interest for US$3mln (of which US$2mln will be paid in shares).
Once complete, ADM’s participating stake in OML 113 will increase to 4.9% - with its revenue and cost bearing interests moving to 9.2% and 12.3%, respectively.
ADM’s net proved and probable reserves will increase to 16.4mln barrels from 8.9mln barrels. Net production will accordingly increase to 273 barrels of oil per day from 148 bopd.
OML 113 is described as being “well known” to the company, and, it comprises current oil production plus several exploration and appraisal plays.
How it is doing
In July qualified to participate in the Nigerian government’s first oilfield licence bid round since 2003 as the exclusive technical partner of local oil and gas service management company, OilBank International.
Some 57 marginal fields are being offered up by the Nigerian Department of Petroleum Resources, covering onshore, swamp and shallow offshore fields.
What the boss says: Osamede Okhomina, chief executive
“We are delighted to have pre-qualified for the submission stage of Nigeria's 2020 Marginal Field Bid Round in partnership with OilBank, an indigenous company with a vastly experienced board and management team.
“The bid round is a tremendous opportunity to invest into an undervalued, near-term production asset during an unprecedented low oil price environment.”
“The memorandum of understanding with OilBank gives us a high-quality local partner to work alongside our team of expert technical advisers. This, combined with the Trafigura strategic alliance for up to US$100mln of pre-financing, means we are in a strong position to evaluate and finance investment into attractive oil and gas assets.”