ADM Energy, an oil and gas investing company quoted on AIM, has reached agreement with EER (Colobus) Nigeria Limited ("EER") for the immediate payment, in cash and shares, of the USD$250,000 deposit due as part of the sale and purchase agreement to acquire a further interest of 2.25% in oil mining lease OML 113 from EER announced on 24 February 2020.

KEYPOINTS:

• Payment of USD$250,000 deposit in cash and shares as part of the sale and purchase agreement
• ADM is in the process of applying for the consent of the Nigerian Minister of Petroleum Resources for the transfer of the interest from EER to ADM, which takes the Company closer to completing the Agreement
• Subject to completion of the Agreement ("Completion"), ADM's participating interest in OML 113 will increase to 4.9% with corresponding revenue and cost bearing interests increasing to 9.2% and 12.3% respectively
• Recently strengthened balance sheet and cash position following Loan Facilities Agreement, Directors' Subscriptions and Debt Conversion, as reported on 27 April 2020
• Operations at OML 113 remain largely uninterrupted, with production levels remaining stable
• Osamede Okhomina, CEO of ADM, said: 

"Keeping to our stated plan, we have completed the second stage of this agreement with EER, taking us another step closer to concluding the transaction and increasing our position in OML 113, which is a high-quality asset.

"Despite the wider, global macroeconomic issues, we believe the longer-term outlook remains very positive within our market. We are focused on continuing to execute our strategy and are well placed to do so having recently strengthened our financial position."

Payment Terms

The deposit will be satisfied with an immediate payment of USD$125,000 in cash with the remaining USD$125,000 to be satisfied with the issue of 4,242,696 new ordinary shares of 1 pence each at 2.4 pence per share ("Deposit Shares") at an exchange rate of approximately USD$1.23:£1. ADM will shortly commence its application for the consent of the Nigerian Minister of Petroleum Resources for the transfer of the interest from EER to ADM, a condition of Completion. The deposit is refundable and, in the event of the termination of the Agreement, the cash component of the deposit will be refunded and the Deposit shares will be acquired at nominal value or returned to the Company for no consideration.

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