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ADM Energy announces investment in development of Barracuda oil field, Nigeria and Fundraise

Further to the announcement on 18 February 2021, ADM Energy, a natural resources investing company, has announced that it has conditionally agreed to invest in the development of the Barracuda oil field in OML 141, an existing discovery and near-term production asset in swamp/shallow waters offshore Nigeria.  The investment will be made by way of an acquisition of a 51% interest in K.O.N.H. UK, which holds an indirect interest in a Risk Sharing Agreement (‘RSA’) for the Field.

Consideration for the Investment may total up to US$1.3m, of which US$0.25m is to be settled in cash on completion and the balance is to be settled in equity, at the higher of 7p and the then prevailing share price, on completion and on satisfaction of certain project milestones. 

The Company intends to raise approx. US$0.5m in cash by way of a subscription, for new ordinary shares to, inter alia, provide funding for the Investment (the ‘Fundraise’). The subscription will be effected by way of an accelerated bookbuild, at a price of 4.25 pence per new ordinary share.

As part of the Fundraise, the Company intends to enter into subscription agreements with investors and certain of its directors and PDMRs pursuant to which they will subscribe for new ordinary shares at the Subscription Price. The Fundraise is conditional on admission of the new ordinary shares pursuant to the Fundraise to trading on AIM.

The Bookbuild will open with immediate effect following release of this announcement. A further announcement confirming the closing of the Bookbuild and the number of new ordinary shares to be issued pursuant to the Fundraising is expected to be made in due course.

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Source: EnergyPedia

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