Page 9 - AfrOil Week 18 2021

AfrOil INVESTMENT AfrOil

The Sangomar licence area includes three sep- Woodside has said it hopes to begin production
arate fields – Rufisque, Sangomar Offshore and in 2023. RSSD has estimated that its licence
Sangomar Deep Offshore. Together, these sites area contains 645mn barrels of oil equivalent in
give the RSSD joint venture its name. recoverable reserves, including 485mn barrels of
Oil was discovered at the block in 2014, and crude oil and 160mn boe of natural gas. ™

ADM Energy says it has acquired a

controlling stake in Barracuda

NIGERIA NIGERIA’S ADM Energy said last week that it state that the parties had entered into a lock-in
had succeeded in acquiring a controlling interest agreement under which the latter organisation
in Barracuda, an oilfield within the shallow-wa- would not “dispose of any shares issued to it in
ter licence area known as OML 141. consideration for the investment for 12 months
In a statement, ADM Energy explained after the issue of any such consideration shares,
that it had purchased a 51% stake in K.O.N.H. save for in certain limited circumstances or
UK., a British-registered company. K.O.N.H. upon the prior written consent of the [Nigerian]
UK is the owner of Noble Hill-Network Ltd company.”
(NHNL), which holds a 70% indirect interest Together, the cash and shares have a value of
in the rights-sharing agreement (RSA) covering about $800,000. However, the deal might ulti-
Barracuda. mately be worth as much as $1.3mn, provided
This purchase will bring the Nigerian compa- that certain upstream milestones were met at the
ny’s net profit interest in the project up to 15%, Barracuda field.
it reported. ADM explained the higher figure by noting
The company is paying for the stake with a that it had agreed to pay out another $100,000
combination of $250,000 in cash and $550,000 worth of ordinary shares once a drilling con-
worth of its own ordinary shares. The equity tract for the Barracuda-5 well was signed, plus
portion of its payment will consist of 5,657,912 another $400,000 worth of ordinary shares
ordinary shares in ADM Energy, equivalent to upon the successful completion of a flow test at
3.59% of its share capital. The stock will be issued Barracuda-5.
to Calabar Capital once ADM Energy is cleared ADM Energy indicated that work on Barra-
to list its stock on the Alternative Investment cuda-5 was due to begin in the second half of
Market (AIM), a subsidiary of the London Stock 2021. Yields at Barracuda may rise to 4,000 bar-
Exchange (LSE). rels per day (bpd) by the end of the year, it said.
ADM Energy did not provide any identifying Osamede Okhamina, the CEO of ADM
information on Calabar Capital. However, it did Energy, expressed satisfaction with the deal.

Barracuda may be producing 4,000 bpd by year-end (Image: ADM Energy)

Week 18 05•May•2021 www. NEWSBASE .com P9