ADM Energy to triple crude production
British energy firm, ADM Energy has paid $250,000 as a deposit for a further 2.25% holding in Oil and Mining Lease (OML) 113 in the Aje oilfield.
The Nigerian Investment Promotion Commission, NIPC disclosed this on Saturday, saying the move brings closer the plans for ADM to make a full settlement for the offshore asset,
The AIM-listed firm has thus scaled the second hurdle in the procurement process after reaching terms with Energy Equity Resources and now has its eyes on the asset handover, which it said would double production.
Majority-owned by oil mogul, Yinka Folawiyo with 60 per cent interest, OML 113 operates at the Benin Basin offshore Nigeria and is estimated to reach a plateau production of between 50,000 and 80,000 barrels of oil equivalent a day.
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“We closed the deal in February just before the crash in the oil prices and the coronavirus lockdown and we thought the need to progress the transaction,” Osamede Okhomina, ADM Energy’s chief executive told Proactive investors.
The US$250,000 deposit would come in cash and shares, a condition Mr. Okhom said was a favourable one for the company as “it helps us conserve cash but also demonstrates that the vendor has confidence in our stock plans and our valued ability to grow the business.”
ADM Energy’s longer term plan plans are to triple oil production, its CEO said.
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