ADM commissions new CPR on Barracuda Field
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014 (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
25 May 2021
ADM Energy PLC
("ADM" or the "Company")
ADM commissions new CPR on Barracuda Field
ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resources investing company, is pleased to announce that it has commissioned Xodus Group Ltd ("Xodus"), a leading global energy consultancy, to produce an updated Competent Person's Report ("CPR") on the Barracuda Field.
The new CPR is the next step in the agreed scope of work under the Risk Sharing Agreement ("RSA") for the development of the Barracuda Field, in which the Company holds an indirect interest. The independent report will provide a full technical and economic review of the Barracuda Field, assessing the latest data to define the asset's geological profile and estimated gross in-place and recoverable oil and gas volumes from oil and gas accumulations located in NW OML 141 Licence Area, onshore Nigeria. Xodus will use the Society of Petroleum Engineers ("SPE") Petroleum Resource Management System ("PRMS"), updated in 2018, for classification of the oil and gas volumes. This provides more clarity on classification of resources than the PRMS of 2007.
Xodus is a multi-discipline global engineering consultancy with an extensive history of performing reserve and resource evaluations and CPRs. It has worked on numerous projects in Nigeria and West Africa, with clients including E&P operators, governments, financial institutions, intermediaries and investors.
The Barracuda Field is an existing discovery located in swamp/shallow waters, Bayelsa State, Nigeria. Four wells have been drilled in the Barracuda Field on OML 141; three in 1967 and the most recent, Barracuda-4, being drilled in 2007. A CPR prepared for Nobel Hill Network Limited by Ryder Scott in 2016, prior to the Company's involvement, produced positive results from logs and sidewall cores with hydrocarbon shows supporting an oil discovery at areas identified as D-1B and C3 levels. The report indicated P50 estimated prospective gross in place oil volumes of 1.3 billion barrels from two sand reservoir intervals. Ryder Scott used the 2007 SPE PRMS for classification of volumes.
It is expected that the CPR will take four to six weeks. The Company will report the results to the market once completed.
Osamede Okhomina, CEO of ADM Energy, said: "The new CPR is the springboard for the RSA Consortium's plans to develop the Barracuda Field and take the asset into production. It will validate the appraisal work already conducted by our internal technical team, which has defined immediate recoverable reserves and significant potential beyond. We believe that first oil of 4,000 BOPD may be possible and, subject to rig availability, could be achieved in H2 2021 by drilling an appraisal well (Barracuda-5). If this is successful, there may be the opportunity to further increase production to approximately 23,000 BOPD by drilling six wells by 2026.
"Since finalising the acquisition last month, we have moved swiftly to secure the services of key technical partners and have now officially commissioned Xodus to produce the CPR. We are pleased by progress at Barracuda to date and will continue to take a proactive role in driving the project forwards towards production."
ADM Energy plc
+44 20 7459 4718
Osamede Okhomina, CEO
Cairn Financial Advisers LLP
+44 20 7213 0880
Jo Turner, James Caithie
Arden Partners plc
+44 20 7614 5900
Paul Shackleton, Daniel Gee-Summons
+44 20 3764 2341
Claire Louise Noyce
ODDO BHF Corporates & Markets AG
+49 69 920540
Michael B. Thiriot
+44 20 7618 9100
Harry Chathli, Alexis Gore, Joe Quinlan
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 835km² offshore Nigeria. Aje has multiple oil, gas, and gas condensate reservoirs in the Turonian, Cenomanian and Albian sandstones with five wells drilled to date.
The Company also holds an investment in the development of the Barracuda Field, an existing discovery and near-term production asset in the NW part of OML 141, which covers 103 km2 in the swamp/shallow waters of the Niger Delta. Four existing wells have been drilled to date and a fifth is intended to be drilled in Q4 2021.
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.
Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions shareholders and prospective shareholder holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.