ADM Energy plc (AIM: ADME), an oil and gas investing company quoted on AIM, announces its audited full year results for the year ended 31 December 2018.
Highlights
- Revenue increased 82% to £3.1m (2017: £1.7m)
- Loss after tax reduced to £849,000 (2017: £3,435,000 loss)
- Aje Field asset, in which ADM Energy holds 5% equity investment, continued to perform well:
o Oil is being produced at a stable rate from two wells in the Aje Field (Aje-4 and Aje-5), part of OML 113, in which the Company has an investment.
o Two wells achieved a total produced volume of approximately 1,200,000 barrels of oil in 2018.
o Combined production from the two wells (as of April 2019) approximately 3,100 bopd (155 bopd net to ADM Energy).
o Significant increase in reserves outlined by the Competent Person’s Report (“CPR”) completed in 2018 and updated in April 2019.
o Renewal of the OML 113 licence for another 20 years approved by the Minister of Petroleum Resources.
o Field Development Plan for the Turonian Aje gas project (“FDP”) approved by the Nigerian Government.
o Plan for the next phase of the Aje Field expansion is being developed.
Post Period
- In March 2019, Aje completed its 10th lifting, equating to 17,323 barrels sold by the joint operators at $66.97 per barrel. At the project level, the Company’s investment produced $1.16m revenue and net profit of approximately $600,000.
- Aje partnership has fully paid the $9.8m licence renewal fee, thereby securing a 20 year extension of OML 113 (Aje field) licence.
- In April 2019, the Private office of His Highness Shaikh Ahmed Bin Dalmook Al Maktoum subscribed for 1,335,000,000 shares (equating to £534,000) and, as a result, holds 28.7% of the Company’s shares.
- On 11 June 2019, the Company changed its name from MX Oil to ADM Energy.
- Ordinary share consolidation on the basis of 1 share for every 100 shares, thereby reducing the number of shares in issue, from 4,471,349,700 to 44,713,497 (the “Consolidation”).
Richard Carter, Chairman of ADM Energy, stated: “The Aje partnership made excellent progress in 2018. The updated CPR demonstrated a material increase in the project’s reserves and resource position which highlights the future potential of the Aje Field. Based on the current performance of wells Aje-4 and Aje-5, and assuming no significant increase in the Company’s overheads, ADM Energy is aiming to become cashflow positive in 2020, subject to continued production, sustained oil prices and no unforeseen expenditure at project level, a significant milestone. In addition to the progress at Aje, the support received from the Private Office of His Highness Shaikh Ahmed Bin Dalmook Al Maktoum, and his subsequent appointment as President, will add considerable experience, enhanced networks and access to capital.
“Looking ahead, our strategy is to build a larger, balanced portfolio of investments in projects in line with ADM Energy’s investing strategy. ADM Energy will target investment opportunities in undervalued production and near-production assets, primarily in Africa. The recruitment process for key executive management positions and independent non-executive Directors is underway to provide additional support for what the Board believes is a significant opportunity to grow the business and create value for shareholders.”
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