ADM Energy, a natural-resources investing company, announced that the Board of Directors have completed an internal review of existing investments, financial resources and future investment opportunities available to the Company
The Board has concluded that opportunities available to it in energy technology, such as the OFX Technologies, LLC investment announced 29 November 2023, present a compelling path to growth in per share value and cash flow for the Company.
As a result, the Board has resolved to consider alternatives for monetising its 12.3% cost share and 9.2% profit share interest in the Aje Field, OML-113 offshore Lagos, Nigeria.
Alternatives to be considered by the Company for Aje include its sale, a joint-venture, farming-out or other such transactions.
Among other alternatives to be considered, Energy Equity Resources (Nigeria), Ltd. ("EER"), a 16.8% cost share and 12.6% profit share partner in the Aje consortium, will work with the Company on potential alternatives involving third party financing to meet the requirements of both EER and the Company related to the Aje.
The Board has resolved to hire a third-party adviser to manage the process of identifying and executing a potential transaction related to its interest in OML-113 and to discuss with its auditors any implications in respect of the classification of the Aje asset.
Stefan Olivier, CEO of ADM Energy plc, said, "The investment in Efficient Oilfield Solutions, LLC announced 29 November 2023 is a pivotal strategic development representing a new focus for the Company away from capital intensive, long lead-time projects toward compelling opportunities with a clear path to cash flow in high growth energy technology and energy transition related opportunities.
"With recent interest by the German government in working with Nigeria to realise the potential of its massive natural gas reserves, Aje represents a de-risked asset that we believe will be attractive to a variety of strategic and financial investors. Along with the entire Board of ADM, I am committed to realising the potential of the Aje Field and the entire license area for ADM and its shareholders while re-deploying capital into the attractive energy technology opportunities available to the Company."
