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On 29 November 2021, ADM Energy PLC confirmed it asserts that a dispute from Noble Hill-Network Limited ("NHNL") regarding its ownership of NHNL is without merit, following K.O.N.H UK Limited's ("KONH") notification of the dispute on 23 November 2021. ADM confirmed no change to KONH's position as majority shareholder in NHNL; KONH holds an indirect 70% controlling interest in a Barracuda oil field risk sharing agreement, and ADM holds a 51% equity interest in KONH. The company further confirmed it has no obligation to fund NHNL with a $1.75 million payment, as this was included only in superseded non-binding pre-contractual documents.
| Date | 29 Nov 2021 |
| Time | 12:54:34 |
| Category | Corporate updates |
| ID | 9047T |
29 November 2021
ADM Energy PLC
("ADM" or the "Company")
Further re: Barracuda Oil Field
ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resources investing company, notes the announcement made today by Zenith Energy Limited in respect of its option agreement for OML 141 risk service contract.
As announced on 23 November 2021, K.O.N.H UK Limited ("KONH"), a company in which ADM acquired a 51 per cent. equity interest and which holds an indirect 70 per cent. controlling interest in a risk sharing agreement in the Barracuda oil field in OML 141, was notified by Noble Hill-Network Limited ("NHNL") of a dispute regarding its ownership of NHNL.
ADM, and its legal advisers, continue to assert that the dispute brought by NHNL is without merit and confirms that there has been no subsequent change to KONH's position as majority shareholder in NHNL.
The Company further notes speculation in relation to a payment demand from NHNL for $1.75 million from the Company. ADM confirms that, whilst such an obligation had been included in non-binding pre-contractual documents in relation to the Barracuda field investment, this obligation was superseded and not replicated in the executed contractual documents which do not contain any obligation on the Company to fund NHNL with this amount. ADM's legal advisers wrote to NHNL outlining its position and stated that the claim was without merit.
The Company continues to take advice on this matter and will update the market further in due course.
Enquiries:
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ADM Energy plc |
+44 20 7459 4718 |
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Osamede Okhomina, CEO |
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Cairn Financial Advisers LLP |
+44 20 7213 0880 |
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(Nominated Adviser) |
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Jo Turner, James Caithie |
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Hybridan LLP |
+44 20 3764 2341 |
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(Lead Broker) |
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Claire Louise Noyce |
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ODDO BHF Corporates & Markets AG |
+49 69 920540 |
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(Designated Sponsor) |
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Michael B. Thiriot |
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Luther Pendragon |
+44 20 7618 9100 |
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(Financial PR) |
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Harry Chathli, Alexis Gore, Tan Siddique |
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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.
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.