ADM Energy Plc has qualified for participation in the Marginal Oil Field License Bid Round 2020 in Nigeria, through its local partner, OilBank International.
OiBank International is an oil and gas service management company. The oilfields being offered by the Department of Petroleum Resources, Nigeria covers onshore, swamp and shallow offshore fields.
ADM is the exclusive partner of the local company and both companies have successfully shown the required technical and financial capabilities to embark on this project, and have now scaled through the pre-qualification round of the bid. The second stage consists of technical and commercial bid submission and is expected to be submitted by the end of August.
The provisions of the Memorandum of Understanding (MoU) signed by the companies state that if OilBank is awarded a licence after the bid round, ADM will enter into a substantive agreement with OilBank under which the AIM-listed and the UK-listed company will participate in the investment and development of any awarded fields.
Speaking on the development, the Chief Executive Officer of ADM, Osamede Okhomina said, “We are delighted to have pre-qualified for the submission stage of Nigeria’s 2020 Marginal Field Bid Round in partnership with OilBank, an indigenous company with a vastly experienced board and management team.”
“The bid round is a tremendous opportunity to invest into an undervalued, near-term production asset during an unprecedented low oil price environment.”
“The MOU with OilBank gives us a high-quality local partner to work alongside our team of expert technical advisers. This, combined with the Trafigura strategic alliance for up to US$100mln of pre-financing, means we are in a strong position to evaluate and finance investment into attractive oil and gas assets.”
ABOUT ADM ENERGY PLC
ADM Energy is an AIM-listed natural resources investment company with an existing asset base in Nigeria. ADM Energy holds a 5% equity investment in the Aje Field, part of OML 113, which covers an area of 835 sq km offshore Nigeria. Aje has multiple oil, gas and gas condensate reservoirs in the Turonian, Cenomanian and Albian sandstones with five wells drilled to date.
ADM Energy is seeking to build on its existing asset base in Nigeria and target other investment opportunities across the West African region in the oil and gas sector with attractive risk reward profiles such as proven nature of reserves, level of historic investment, established infrastructure, route to early cash flow and exploration upside.
%20signed%20by%20the%20companies%20state%20that%20if%20strongOilBank/strong%20is%20awarded%20a%20licence%20after%20the%20bid%20round,%20strongADM/strong%20will%20enter%20into%20a%20substantive%20agreement%20with%20strongOilBank/strong%20under%20which%20the%20AIM-listed%20and%20the%20UK-listed%20company%20will%20participate%20in%20the%20investment%20and%20development%20of%20any%20awarded%20fields.Speaking%20on%20the%20development,%20the%20Chief%20Executive%20Officer%20of%20ADM,%20Osamede%20Okhomina%20said,%20em“We%20are%20delighted%20to%20have%20pre-qualified%20for%20the%20submission%20stage%20of%20Nigeria's%202020%20Marginal%20Field%20Bid%20Round%20in%20partnership%20with%20OilBank,%20an%20indigenous%20company%20with%20a%20vastly%20experienced%20board%20and%20management%20team./emem“The%20bid%20round%20is%20a%20tremendous%20opportunity%20to%20invest%20into%20an%20undervalued,%20near-term%20production%20asset%20during%20an%20unprecedented%20low%20oil%20price%20environment.”/emem“The%20MOU%20with%20OilBank%20gives%20us%20a%20high-quality%20local%20partner%20to%20work%20alongside%20our%20team%20of%20expert%20technical%20advisers.%20This,%20combined%20with%20the%20Trafigura%20strategic%20alliance%20for%20up%20to%20US$100mln%20of%20pre-financing,%20means%20we%20are%20in%20a%20strong%20position%20to%20evaluate%20and%20finance%20investment%20into%20attractive%20oil%20and%20gas%20assets.”/emh2ABOUT%20ADM%20ENERGY%20PLC/h2ADM%20Energy%20is%20an%20AIM-listed%20natural%20resources%20investment%20company%20with%20an%20existing%20asset%20base%20in%20Nigeria.%20ADM%20Energy%20holds%20a%205%%20equity%20investment%20in%20the%20Aje%20Field,%20part%20of%20OML%20113,%20which%20covers%20an%20area%20of%20835%20sq%20km%20offshore%20Nigeria.%20Aje%20has%20multiple%20oil,%20gas%20and%20gas%20condensate%20reservoirs%20in%20the%20Turonian,%20Cenomanian%20and%20Albian%20sandstones%20with%20five%20wells%20drilled%20to%20date.ADM%20Energy%20is%20seeking%20to%20build%20on%20its%20existing%20asset%20base%20in%20Nigeria%20and%20target%20other%20investment%20opportunities%20across%20the%20West%20African%20region%20in%20the%20oil%20and%20gas%20sector%20with%20attractive%20risk%20reward%20profiles%20such%20as%20proven%20nature%20of%20reserves,%20level%20of%20historic%20investment,%20established%20infrastructure,%20route%20to%20early%20cash%20flow%20and%20exploration%20upside.){kind=link}