ADM Energy has announced the completion of its acquisition of a controlling interest in a Risk Sharing Agreement for the development of the large-scale Barracuda field in OML 141, offshore Nigeria.

ADM acquired a 51% interest in K.O.N.H. UK Limited (‘KONH’), which holds a 70% indirect interest in the rights, benefits and obligations under the RSA relating to the Barracuda area of OML 141, and it is to provide technical and financial support to the RSA Consortium in return for favourable accelerated economics and a 15% Net Profit Interest in the Field.

Excerpt from details of the payment as explained by ADM Energy: “Following completion of the Investment, ADM has paid $0.25 million (approx. £180,000) in cash and $0.55 million (approx. £395,000) in ordinary shares at the price of 7p.  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 which, on admission of the New Ordinary Shares to trading on AIM, will hold 5,657,912 ordinary shares, representing 3.59%.

The Chief Executive Officer of ADM Energy, Osamede Okhomina, said: “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.”