Aje field partners plan further development drilling in 2020 – ADM Energy CEO

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ADM Energy plc (AIM: ADME), an oil and gas investing company quoted on AIM, announces its unaudited half-yearly results for the six months ended 30 June 2019.
Financial Highlights:

H1 2019

H1 2018

Change

Group level

Revenue

£2.2m

£968k

Increased by 124%

Loss after tax

£448k

£1.1m

Reduced by 61%

Investment Highlights:
The Aje Field, part of OML 113, in which ADM Energy holds a 5% equity investment
·     Oil continues to be produced at a broadly stable rate from two wells (Aje-4 and Aje-5) at an average of 3,009 bopd
·     In June 2019, Aje completed its 11th lifting, equating to 297,581 barrels sold by the joint operators at $64.844 per barrel
·     Total produced volume of approximately 662,448 barrels of oil from January to August 2019
·     Significant increase in recoverable oil reserves outlined by the Competent Person’s Report (“CPR”) updated in April 2019 as a result of better than expected production levels
·     Aje partnership fully paid the $9.8m licence renewal fee, thereby securing a 20-year extension of the OML 113 licence
·     Technical work has largely been concluded to support a decision on Aje Phase 2 development; targeting estimated gross production of 8-12,000 bopd
Post Period Highlights:
·     Appointed Osamede Okhomina as Chief Executive Officer of ADM Energy in mid-July
·     Raised additional equity of c.£1.33 million gross in two fundraisings

Osamede Okhomina, CEO of ADM Energy, commented:
“During this period, there have been two liftings and sales from Aje which continues to produce at a stable rate.  The revenues generated from the Aje Field means ADM Energy remains on track to become cash flow positive in H1 2020, subject to continued production, sustained oil prices and no unforeseen expenditure at the asset level. This is a key milestone for the Company and provides us with a strong platform from which to expand the business. Our confidence in the Aje Field has been enhanced, particularly by the partners’ renewal of the production licence for a further twenty years, and discussions are taking place for further development drilling in 2020.
“We continue with our plans to build a larger investment portfolio of undervalued projects by leveraging on our extensive network across Africa and originating deals for appraisal, development and producing assets. The Board looks forward to the future with confidence.”

Source: ADM Energy
The post Aje field partners plan further development drilling in 2020 – ADM Energy CEO appeared first on Energy News | Oil and Gas News.

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