ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resources investing company, is pleased to announce the completion of the 14th Lifting (“Lifting”) at the Aje Field, part of OML 113 offshore Nigeria in which the Company currently holds a 5% crude entitlement.

As a result of the market volatility caused by the coronavirus pandemic, certain Aje Partners made the decision earlier this year to defer oil sales and store production on the FPSO, which has up to 750,000 barrels of storage capacity. Therefore, the Company and other partners chose not to participate in the 13th Lifting which occurred in March 2020 due to the prevailing oil price at the time. This has allowed ADM to benefit from the recovery in oil prices during the intervening period.

The Lifting totalled 557,091 barrels with a net share of 33,056 barrels to ADM, which equates to ADM’s paying interest of approximately 6%. The proceeds of the Lifting will be applied against the project debt, significantly reducing the outstanding balance. The nominated offtake partner for the Lifting was Mercuria Energy Group Ltd, the global integrated energy and commodity trading company.

Osamede Okhomina, CEO of ADM Energy plc, said:

“Faced with market volatility earlier this year, we chose to take advantage of the large storage capacity onboard the FPSO and to defer oil sales from Aje. It is therefore very pleasing to have now competed the 14th lifting at a significantly higher price than would have been possible earlier in the year.

“We expect to further benefit in the coming months from rising production at Aje in H2 2020, increasing our stake in the asset as we conclude the EER transaction, and a further improvement in the oil price forward curve.”

Source: ADM Energy