ADM Energy to Acquire Additional Stake in Lagos Oilfield

• ADM Energy to Acquire Additional Stake in Lagos Oilfield

ADM Energy Plc announced it has entered into a sale and purchase agreement with EER(Colobus) Nigeria Limited to pay $3,000,000 for 2.25 percent stake in Oil Mining Lease 113.

“Consideration for the acquisition is $3,000,000 to be satisfied by the issue of $2,000,000 of new ordinary shares at seven pence per share and $1,000,000 in cash at the time of completion,” the company said in an emailed statement.

Yinka Folawiyo Petroleum Company Limited, an indigenous firm, is the operator of OML 113, where Aje oilfield, Offshore Lagos is located.

Osamede Okhomina, the Chief Executive Officer, ADM, said, “In keeping with our strategic development agenda, I am pleased to announce our first investment under the company’s new leadership.

“OML 113 is well known to us and it is a fantastic asset that covers the spectrum of field types from current oil production to several appraisal plays.

“It is also very wet-gas rich which provides the potential for the operator to be able to bring into the market, alongside dry gas, resources like condensate and LPG.

“As envisaged under the intended strategic alliance signed earlier this month, we have proposed this project as one Trafigura may consider investing in. We look forward to updating the market further in due course.”