ADM Energy PLC Further re: Barracuda Oil Field (9047T)

TIDMADME

RNS Number : 9047T

ADM Energy PLC

29 November 2021

29 November 2021

ADM Energy PLC

("ADM" or the "Company")

Further re: Barracuda Oil Field

ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resources investing company, notes the announcement made today by Zenith Energy Limited in respect of its option agreement for OML 141 risk service contract.

As announced on 23 November 2021, K.O.N.H UK Limited ("KONH"), a company in which ADM acquired a 51 per cent. equity interest and which holds an indirect 70 per cent. controlling interest in a risk sharing agreement in the Barracuda oil field in OML 141, was notified by Noble Hill-Network Limited ("NHNL") of a dispute regarding its ownership of NHNL.

ADM, and its legal advisers, continue to assert that the dispute brought by NHNL is without merit and confirms that there has been no subsequent change to KONH's position as majority shareholder in NHNL.

The Company further notes speculation in relation to a payment demand from NHNL for $1.75 million from the Company. ADM confirms that, whilst such an obligation had been included in non-binding pre-contractual documents in relation to the Barracuda field investment, this obligation was superseded and not replicated in the executed contractual documents which do not contain any obligation on the Company to fund NHNL with this amount. ADM's legal advisers wrote to NHNL outlining its position and stated that the claim was without merit.

The Company continues to take advice on this matter and will update the market further in due course.

Enquiries:

 
ADM Energy plc                             [phone] 
Osamede Okhomina, CEO 
www.admenergyplc.com 
 
Cairn Financial Advisers LLP               [phone] 
(Nominated Adviser) 
Jo Turner, James Caithie 
 
Hybridan LLP                               [phone] 
(Lead Broker) 
Claire Louise Noyce 
 
ODDO BHF Corporates & Markets AG           [phone] 
(Designated Sponsor) 
Michael B. Thiriot 
 
Luther Pendragon                           [phone] 
(Financial PR) 
Harry Chathli, Alexis Gore, Tan Siddique 
 

About ADM Energy PLC

ADM Energy PLC (AIM: ADME; BER and FSE: P4JC) is a natural resources investing company with an existing asset base in Nigeria. ADM Energy holds a 9.2% profit interest in the oil producing Aje Field, part of OML 113, which covers an area of 835km(2) 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 and route to early cash flow.

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November 29, 2021 07:54 ET (12:54 GMT)