ADM Energy has entered into a non-binding collaboration agreement ("CA") with Eunisell, the Nigerian owned oil and gas production solutions company.

Under the terms of the CA, subject to the completion of certain due diligence, ADM and Eunisell will explore collaboration opportunities to carry out development of Barracuda Field in OML 141 and associated work-related activity in Nigeria. It is the intention of both parties, together with the risk sharing consortium in respect of Barracuda Field, that a formal agreement will be entered into in advance of any work commencing. The CA may be terminated by mutual consent.

Eunisell has decades of experience in engineering, production, operations and enhanced production techniques within Nigeria and the Parties intend to work together to use their combined experience to accelerate production of oil and gas assets, initially concentrating initiating production at the Barracuda field in which ADM recently invested. Activities under the intended scope of work may include early production facility supply, procurement, construction and commissioning of production facilities, extended well testing and laboratory services. 

Following discussions, Eunisell may consider providing vendor financing to achieve the scope of work to be agreed, subject to terms and conditions to be determined at the point of an award of contract.

Osamede Okhomina, CEO of ADM Energy plc, said: 
"The collaboration agreement with Eunisell, one of Nigeria's leading providers of oil field services and facilities, paves the way to bringing another high-class partner into the ADM fold. With a customer base in the region featuring oil and gas majors, Eunisell has been a key facilitator for the Nigerian oil and gas marketplace for many years, helping operators to reach their production goals faster and at less capital costs. We look forward to building a relationship and are excited by the potential of working alongside them to support the development of our investments such as the Barracuda Field in OML 141."

Barracuda Field

The Barracuda Field sits in the northwest part of OML 141, an Oil Mining Licence area covering 1,295km2 in the swamp/shallow waters of the Niger Delta in Nigeria.

Four existing wells drilled in 1967 (three wells by Tenneco) and 2007 (one well by CNOOC) penetrated oil-bearing high-quality C3 and D-1B sands typical of the stacked delta top and prodelta reservoirs in faulted listric settings common in this area. The plan is for a fifth well to be drilled (Barracuda-5) in order to carry out a flow test in Q4 2021 which, if successful, will be brought onstream. The intention is that ADM’s financing partner Dubai Bridge Investments may fund certain development costs (terms and conditions are still to be finalised). Based on existing Barracuda data and field analogues, ADM estimates recoverable oil resources of 73 million barrels from the D-1B reservoir with several other potential reservoir leads to be further appraised after initial production. ADM considers that there may be an opportunity to further increase field productivity from further drilling in the following years.

KeyFacts Energy: ADM Energy Nigeria country profile