ADM Energy Acquires an Additional 2.25% Interest in OML 113, Offshore Nigeria
AIM-listed oil & gas investment company ADM Energy Plc has entered into an agreement with privately held Energy Equity Resources Ltd. (EER) to acquire an additional 2.25% participating interest in OML 113 (containing the producing Aje field) located offshore Nigeria.
The transaction consideration of US$3 million is comprised of US$1 million in cash to be paid at the time of completion, plus US$2 million to be satisfied through the issuance of new ordinary shares at GBpence 7 per share. As a result of the acquisition, ADM’s participating interest in the license will increase to approximately 4.9%, with the corresponding revenue and cost bearing interests increasing to 9.2% and 12.3%, respectively.
OML 113 covers an area of 858 sq. km in the western Nigeria offshore Dahomey basin, situated in water depths ranging from 100 to 1,000 m. The West African Gas Pipeline (WAGP) intersects the north-west part of the licence. Other license partners currently include Yinka Folawiyo Petroleum Company Ltd. (YFP), New Age Exploration Nigeria Ltd., and Pan Petroleum Aje Ltd.
The completion of the transaction is conditional upon the consent of the Nigerian Minister of Petroleum Resources, and is expected to be completed within 6 months.