Page 16 - AfrOil Week 05 2020

AfrOil
NEWS IN BRIEF
AfrOil
e Deep Senegal O shore is one of the most prolific hydrocarbon provinces of the world. Intensive exploration e orts over the last 5 years has led to a succession of signi cant discoveries – notably, FAN, SNE, Tortue, Teranga and Yakaar. However, the full potential of the basin and the continental slope is still to be realised.
Modern seismic data and improved geolog- ical models indicate a prospective zone in the MSGBC, located in the deep o shore. Extensive regional 2D and 3D multi-client seismic data provides a high-quality dataset that enables an unprecedented understanding of the evolution of the MSGBC Basin and especially the deep o shore.
Government of Senegal, February 3 2020
FINANCE
ADM Energy signs MoU with Trafigura to develop and finance energy projects in Africa
ADM Energy has entered into a non-binding memorandum of understanding (MoU) with Tra gura, a market leader in the global com- modities industry whose core business is the physical trading of oil and petroleum products and metals and minerals, to develop investment opportunities in the African energy sector.
Under the terms of the MoU, it is the inten- tion of ADM and Tra gura (together, the Par- ties) to create a strategic alliance where ADM will act as the sponsor for investment opportuni- ties in the African energy sector (Projects) which will be presented to Tra gura for consideration as a trading counterparty, or nancing provider.
ADM, as principal, will be responsible for originating, analysing, developing, structuring and negotiating the Projects with counterpar- ties and presenting the Projects to Tra gura for further evaluation. Subject to a Project being approved by Tra gura (Approved Project), the Parties will negotiate a de nitive agreement for each Approved Project.
Tra gura will be entitled to provide ADM with conditional pre-financing of up to US$100mn for the acquisition or development of Approved Projects. It is anticipated that Tra- figura may subscribe for up to US$20mn in convertible loan notes in ADM as definitive
agreements and project funding for Approved Projects are agreed.
Subject to any financing provided, Trafig- ura will have the exclusive rights to market the crude oil produced by the Approved Project on market terms and for an agreed period. In addition, ADM and Tra gura will co-operate to structure and arrange complementary debt and equity funding for approved projects as may be required to supplement any nancial support provided by Tra gura.
e MOU, which has a term of 12 months unless terminated earlier by mutual agreement, constitutes a statement of current intentions and is not legally binding on ADM or Tra gura. ere is no certainty that projects originated by ADM will be approved by Tra gura for nancing and, as ADM is currently an Investing Company pursuant to the AIM Rules, the obligations it may be required to perform under any eventual agreement, if entered into, may trigger a reverse takeover pursuant to Rule 14 of the AIM Rules.
Osamede Okhomina, CEO of ADM, said: “I have enjoyed a long relationship with Tra gura and this Memorandum of Understanding is an endorsement of the Company’s strategy, signal- ling a new stage of development for ADM. We have identi ed a number of excellent investment opportunities in Nigeria and West Africa. With our extensive network, and the potential access to capital this MOU gives to ADM, we believe the Company is well positioned to capture future opportunities.”
James Josling, Head of Africa Energy Trad- ing for Tra gura, said: “Tra gura has been active in Africa for more than 20 years, helping Afri- can producers and re ners of oil, metals and
minerals nance their operations, manage their exports and ultimately connect with their end customers around the world. Today’s signing shows our intention to work with an upstream investing company that has strong roots in Nige- ria and West Africa, and is well placed to develop its potential while being committed to practic- ing good corporate governance as evidenced by ADM’s London quotation.”
ADM Energy, February 3 2020
AAOG reports on Zenith loan agreement
Further to the announcement of January 6, 2020, the Company con rms that it is currently perfecting the security to be granted to Zenith Energy Ltd, pursuant to the loan agreement between the Company and Zenith. is requires the re-registration of Anglo African Oil & Gas Congo S.A.U (AAOG) as a “multi shareholder” company in the Republic of the Congo, which is an administrative legal process.
Accordingly, the Company has not yet drawn the GBP250,000 available to it pursuant to that agreement but is con dent of being able to do so in due course. A further announcement will be made once the security has been perfected and the loan has been drawn.
In the meantime, and following receipt of monies from Forum Energy Services Ltd, as announced on January 20, 2020, the Company has su cient cash to continue trading until the end of March, absent the loan from Zenith and any unforeseen valid claims.
AAOG, January 28 2020
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Week 05 05•February•2020