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AfrOil NEWS IN BRIEF AfrOil

INVESTMENT
ADM Energy successfully

pre-qualifies to bid in
Nigeria’s 2020 marginal

field bidding round

ADM Energy has successfully pre-qualified in
the Nigerian Government’s 2020 Marginal Field
Bid Round. The Company is participating in the
Bid Round as the exclusive technical partner of
OilBank International, a Nigerian integrated oil
and gas service management company.
On June 1, 2020, the Nigerian Department
of Petroleum Resources (DPR) announced
the launch of a new bid round for a total of 57
marginal fields covering onshore, swamp and
shallow offshore fields. The Bid Round, which is
the first in Nigeria since 2003, is open to indig-
enous companies as well as companies such as in nearly 10 years. The ADM management team PERFORMANCE
ADM alongside local partners. After success- is highly knowledgeable of the local oil and
fully demonstrating the required technical and gas sector, both from a technical standpoint Savannah Energy
financial capabilities, ADM and OilBank have and in deal-making, and are proven skilled
now pre-qualified for the second stage of the Bid negotiators with both government bodies and announces FY 2019
Round which consists of technical and commer- counterparties.
cial bid submission. The DPR is intending for all “Having now pre-qualified, we look forward preliminary annual results
submissions to be returned by the end of August to working together as we progress our bid for
2020. marginal fields capable of delivering substantial Savannah Energy, the British independent
ADM is participating in the Bid Round after value for us both.” energy company focused around activities in
signing a Memorandum of Understanding with ADM Energy, August 03 2020 Nigeria and Niger, has announced its unaudited
OilBank as its exclusive technical partner to sup- preliminary results for the year ended December
port its bidding for and any future development Total Gabon divests its 31, 2019, which include approximately six weeks
of the marginal fields. In the event that OilBank’s of operations in Nigeria, following the Compa-
application for a Marginal Field Licence is suc- portfolio of mature non- ny’s successful acquisition of the Nigerian Assets
cessful and it is awarded a Licence, the Company in November 2019, together with a financial and
intends to enter into a substantive agreement operated assets operational update for H1-2020 and outlook for
with OilBank under which ADM expects to FY 2020.
participate and invest in the development of any Total has announced that its 58% owned affili- Key Highlights: FY 2019 maiden Revenues
awarded fields. ate Total Gabon has signed an agreement with of $17.8m comprising $16.9m of gas sales and
Osamede Okhomina, CEO of ADM, said: Perenco to divest its interests in seven mature $0.9m of liquids sales; average realised gas price
“We are delighted to have pre-qualified for the non-operated offshore fields, along with its inter- of $3.64/M cubic feet and an average realised
submission stage of Nigeria’s 2020 Marginal ests and operatorship in the Cap Lopez oil termi- liquids price of $64.0/barrel; average gross daily
Field Bid Round in partnership with OilBank, an nal. The transaction remains subject to approval production for the post Nigerian Asset acqui-
indigenous company with a vastly experienced by the Gabonese authorities. sition period of 17,700 boepd. On a full-year
Board and management team. The Bid Round The price to be paid by Perenco will be basis production from the Nigerian Assets for
is a tremendous opportunity to invest into an between $290mn and $350mn, depending on 2019 rose 32% to 17,200 boepd from 13,000
undervalued, near-term production asset dur- future Brent prices. The production divested by boepd in FY 2018; adjusted EBITDAof $1.8m
ing an unprecedented low oil price environment. Total Gabon amounted to approximately 8,000 (2018: negative $13.4m), Pro-forma FY 2019
The MOU with OilBank gives us a high-qual- SEC barrels of oil per day in 2019. adjusted EBITDA of $91.6m; contract liabili-
ity local partner to work alongside our team of “This transaction demonstrates our ability ties (or Deferred Revenue) recognised in the
expert technical advisers. This, combined with to high grade Total E&P’s portfolio by monet- Statement of Financial Position and related to
the Trafigura strategic alliance for up to $100mn ising mature fields with high breakeven point,” invoiced sales in 2019 of $13.3m, Pro-forma FY
of pre-financing, means we are in a strong posi- commented Arnaud Breuillac, President Explo- 2019 Deferred Revenue of $59.8m; loss after tax
tion to evaluate and finance investment into ration & Production at Total. “We remain fully of $96.8m (2018: $24.6m); net cash inflow of
attractive oil and gas assets.” committed to Gabon through our operated $44.5m (2018: Outflow $13.0m); year-end cash
Biodun Otunola, Director of OilBank, com- production clusters at Anguille-Mandji and balance of $48.1m (2018: $1.8m); year-end net
mented: “We have great confidence in ADM as Torpille-Baudroie-Mérou, where we continue debt of $484.0m (2018: $13.1m); and total Group
our exclusive technical partner for this marginal to maximise value for all stakeholders.” assets amounted to $1,145.0m at year-end (2018:
field round, the first to be launched in Nigeria Total, July 30 2020 $266.0m).

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