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ADM Energy announces 2021 full year results


ADM Energy, a natural resources investing company with an existing multi-asset base in the Aje (OML 113) and Barracuda (OML 141) fields, offshore Nigeria, has announced its full year results for the 12 months ended 31 December 2021.

Investment Highlights

Aje Field, OML 113

  • First full year of increased interest in the Aje Field, Nigeria (ADM increased its equity investment from 5% to 9.2% in December 2020)
  • Total oil production in 2021 of 407,705 bbls and barrels of oil per day of 1,117 bopd 103 bopd net to ADM)
  • Completed the 15th and 16th liftings at the Aje Field in April and October 2021 for a total of 457,379 barrels with a net share of 49,099

Barracuda Field, OML 141

  • Acquired an indirect interest in a Risk Sharing Agreement ("RSA") for the development of the Barracuda Field. Subsequently, commissioned a Competent Person's Report ("CPR") by Xodus on the Barracuda Field
  • Post-period announced the result of the CPR on the Barracuda prospect with a 2U (P50) case, the NPV10 is +$99mm with an IRR of 45%

Disposal of interest

  • Disposed of 188,778 shares in Superdielectrics for a total consideration of £849,501, which provided a profit of £656,000 on ADM's original investment

Financial and Corporate Highlights

  • Revenue increased by 125% to £1.8m (2020: £0.8m), reflecting a recovery in the oil price and ADM's increased profit interest in the Aje Field
  • Loss after tax decreased 64% to £2.5m (2020: £6.9m loss)
  • Completed an oversubscribed fundraising of £1,220,000 in March 2021, and raised an additional £475,000 in November 2021
  • Appointed Oliver Andrews, former Chief Investment Officer at the Africa Finance Corporation, as Non-executive Chairman and Dr Babatunde Pearse, as Chief Engineer on the Aje Development to oversee the next phase of Aje development
  • Post period, in January 2022, the Company completed an equity fundraising of approximately £561,000 with Optima Resources Limited

Osamede Okhomina, CEO of ADM Energy, said:
"2021 was a good year of progress for ADM Energy. It was our first full year since almost doubling our interest in the Aje Field which helped achieve a significant increase in revenues over the previous year.  We also completed an acquisition giving us indirect interest in the Barracuda field, strengthening our foothold in West Africa. 

"2022 is set to be an important year for the development of Aje with PetroNor expected to take a significant stake in the asset demonstrating a commitment and confidence of the potential of Aje. With PetroNor on board, the partners can push ahead with development plans to increase production at Aje.

"In parallel to Aje and Barracuda, we continue to target the acquisition of undervalued 2P reserves that can be added to our investment portfolio and have had encouraging discussions with potential partners regarding various opportunities. It remains a buyers' market as majors look to divest non-core projects presenting opportunities for companies such as ADM who have the network, expertise, and access to capital to progress projects that can potentially bring significant value creation for shareholders."

KeyFacts Energy: ADM Energy Nigeria country profile

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