{"id":10272,"date":"2021-04-28T18:51:49","date_gmt":"2021-04-28T18:51:49","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=10272"},"modified":"2021-04-28T18:51:49","modified_gmt":"2021-04-28T18:51:49","slug":"adm-energy-completes-barracuda-field-transaction","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/adm-energy-completes-barracuda-field-transaction\/","title":{"rendered":"ADM Energy Completes Barracuda Field Transaction"},"content":{"rendered":"

ADM Energy has announce it has completed its acquisition of a controlling interest in a Risk Sharing Agreement for the development of the large-scale Barracuda Field in OML 141, an existing discovery and near-term production asset in swamp\/shallow waters offshore Nigeria.<\/span>\u00a0<\/span><\/p>\n

Highlights<\/span><\/p>\n

\u00b7\u00a0<\/span>ADM acquires a 51% interest in K.O.N.H. UK Limited (“KONH”) (the “Investment”), which holds a 70% indirect interest in the rights, benefits and obligations under the RSA relating to the Barracuda area of OML 141<\/span><\/p>\n

\u00b7\u00a0<\/span>ADM will provide technical and financial support to the RSA Consortium in return for favourable accelerated economics and a 15% Net Profit Interest in the Field<\/span><\/p>\n

\u00b7\u00a0<\/span>New work programme to be produced by the RSA Consortium and joint operators<\/span><\/p>\n

\u00b7\u00a0<\/span>New CPR on the Field expected to be completed in the coming months<\/span><\/p>\n

\u00b7\u00a0<\/span>ADM’s internal estimate suggests that first oil of 4,000 barrels of oil per day (“bopd”) may be possible in H2 2021<\/span><\/p>\n

\u00b7\u00a0<\/span>ADM considers that there may be an opportunity to further increase Field productivity from further drilling.\u00a0 Following the receipt of the CPR and further technical appraisal work, it may be possible to:<\/span><\/p>\n

o\u00a0\u00a0<\/span>Increase production to ca.23,000 bopd by drilling six wells by 2026<\/span><\/p>\n

o\u00a0\u00a0<\/span>Develop a 12km pipeline to Brass Export Terminal, reducing operating expenditure to US$12\/bbl (from US$20\/bbl).<\/span>\u00a0<\/span><\/p>\n

Details of Payment<\/span><\/p>\n

Following completion of the Investment, ADM has paid US$0.25 million (approximately \u00a3180,000) in cash and US$0.55 million (approximately \u00a3395,000) .\u00a0 As a result, ADM has issued 5,657,912 in ordinary shares of 1 pence each at 7 pence per share. The New Ordinary Shares are being issued to Calabar Capital Limited which, on admission of the New Ordinary Shares to trading on AIM. Of the issued share capital of the Company. Calabar Capital Limited has entered into a lock-in agreement with the Company not to dispose of any shares issued to it in consideration for the investment for 12 months after the issue of any such consideration shares, save for in certain limited circumstances or upon the prior written consent of the Company.<\/span>\u00a0<\/span><\/p>\n

The overall consideration for the Investment may total up to US$1.3 million payable in cash and equity.\u00a0 The remainder of the consideration is contingent on demonstrating commercial flow rates from the first new well, and payable as follows:<\/span><\/p>\n

\u00b7\u00a0<\/span>US$0.1 million in ordinary shares of ADM issued at the higher of 7p and the five-day average of the then prevailing share price upon signing of drilling contract for the Barracuda-5 well<\/span><\/p>\n

\u00b7\u00a0<\/span>US$0.4 million in ordinary shares of ADM issued at the higher of 7p and the five-day average of the then prevailing share price on completion of a successful flow test in respect of the Barracuda-5 well.<\/span>\u00a0<\/span><\/p>\n

Osamede Okhomina, CEO of ADM Energy plc, said:\u00a0<\/span>“We are delighted to complete our investment and acquire a controlling interest in a Risk Sharing Agreement for the development of the Barracuda Field. The expectation is for Barracuda Field to come on stream later this year following the drilling of a new well, which, if successful, should give ADM a considerable increase in production volumes and cashflows. With the potential for several new wells in the coming years, we believe this investment and the Barracuda Field represents a compelling opportunity to add significant value to ADM.”<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

ADM Energy has announce it has completed its acquisition of a controlling interest in a Risk Sharing Agreement for the development of the large-scale Barracuda Field in OML 141, an … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":10084,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,11,7444],"tags":[8064,9144,1749,9148],"class_list":["post-10272","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-top-news","category-west-africa","tag-adm-energy","tag-barracuda-field","tag-nigeria","tag-oml-141","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-2FG","jetpack-related-posts":[{"id":10082,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-adm-energy-invests-in-the-development-of-the-barracuda-oil-field-in-oml-141\/","url_meta":{"origin":10272,"position":0},"title":"NIGERIA: ADM Energy Invests in the Development of the Barracuda oil field in OML 141","author":"","date":"March 23, 2021","format":false,"excerpt":"ADM Energy has announced that it has conditionally agreed to invest in the development of the Barracuda oil field in OML 141, an existing discovery and near-term production asset in swamp\/shallow waters offshore Nigeria.\u00a0 The investment will be made by way of an acquisition of a 51% interest in K.O.N.H.\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200 1x, 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"Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":10204,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-adm-energy-enters-into-a-non-binding-collaboration-agreement-with-eunisell\/","url_meta":{"origin":10272,"position":2},"title":"NIGERIA: ADM Energy Enters into a non-binding collaboration agreement with Eunisell","author":"","date":"April 12, 2021","format":false,"excerpt":"Under the terms of the CA, subject to the completion of certain due diligence, ADM and Eunisell will explore\u00a0collaboration opportunities to carry out development of Barracuda Field in OML 141 and associated work-related activity in Nigeria.\u00a0 It is the intention of both parties, together with the risk sharing consortium in\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=525%2C300 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NHNL is a private Nigerian oil and gas company and the registered\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/11\/Nigeria-Aje-field.jpg?fit=807%2C807&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/11\/Nigeria-Aje-field.jpg?fit=807%2C807&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/11\/Nigeria-Aje-field.jpg?fit=807%2C807&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/11\/Nigeria-Aje-field.jpg?fit=807%2C807&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":11247,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-zenith-energy-noble-hill-network-enter-option-agreement-for-oml-141-rsc\/","url_meta":{"origin":10272,"position":4},"title":"NIGERIA: Zenith Energy, Noble Hill-Network Enter Option Agreement for OML 141 RSC","author":"","date":"November 29, 2021","format":false,"excerpt":"Zenith Energy has entered into an Option Agreement with Noble Hill-Network Limited, a private Nigerian oil and gas company. NHNL is the sole, 100% holder of a Risk Service Contract for the development of the North-West Corner of OML 141 in Nigeria, defined as the Risk Service Contract Area, which\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Nigeria-Oil-Rig.jpg?fit=907%2C535&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Nigeria-Oil-Rig.jpg?fit=907%2C535&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Nigeria-Oil-Rig.jpg?fit=907%2C535&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/08\/Nigeria-Oil-Rig.jpg?fit=907%2C535&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":11946,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-zenith-energy-elects-not-renew-the-option-agreement-for-oml-141\/","url_meta":{"origin":10272,"position":5},"title":"NIGERIA: Zenith Energy Elects not Renew the Option Agreement for OML 141","author":"","date":"March 2, 2022","format":false,"excerpt":"Zenith Energy has announced that it has elected to not renew the Option Agreement with Noble Hill-Network Limited, first announced to the market on November 29, 2021, for the purchase of a 42% (forty-two percent) interest in the share capital of NHNL. Zenith says it remains of the view that\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/03\/OML-141-2.jpg?fit=576%2C394&ssl=1&resize=525%2C300 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/10272","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=10272"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/10272\/revisions"}],"predecessor-version":[{"id":10273,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/10272\/revisions\/10273"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/10084"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=10272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=10272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=10272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}