13 June 2024

ADM Energy PLC

("ADM" or the "Company")

JKT Reclamation Facility Operations Update

ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resource investing company, is pleased to provide the following update with respect to operations of JKT Reclamation, LLC ("JKT"), the revenue and cash flow generating oil reclamation business in which the Company owns a 30.6% economic interest.

Further to the announcement on 23 May 2024, the Company has now taken delivery of its 550-barrel capacity mixing tank and the two new pumps, which will be installed at the site imminently. JKT has initiated a work program that includes reconfiguring existing storage capacity, installing the new equipment and other projects designed to improve the processing capacity and efficiency of its facility in Wilson, Oklahoma.  

Table 1.0 highlights the gross barrels of oil produced at the facility from the first month of operations, February 2024.

Table 1.0. Summary of JKT produced oil volumes.

JKT continues to evaluate properties for a second reclamation facility in the State of Texas.  Further details regarding the second reclamation facility will be provided in due course.

ADM is further pleased to announce that it has received a cash distribution from JKT in the amount of US$14,000.00 in May 2024 for production during April 2024. The Company expects cash distribution levels to grow with production in the coming months. The Company will receive 42.0% of cash distributions until it has received US$356,250.00 and 30.6% thereafter

Commenting on the monthly JKT operations update Stefan Olivier, CEO, stated: "We are pleased by the initiation of the work program at the Wilson, Oklahoma facility and the expected increase in production and cash flow we expect the upgrade to drive upon completion.  The stable cash flow that this business is capable of generating fits ADM's strategy and the Board is interested in participating in a second reclamation facility in the State of Texas." 

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

Enquiries:

About ADM Energy PLC

ADM Energy PLC (AIM: ADME; BER and FSE: P4JC) is a natural resources investing company with investments including a 30.6% economic interest in JKT Reclamation, LLC; a 46.8% economic interest in OFX Technologies, LLC (www.ofxtechnologies.com); and a 9.2% profit interest in the 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.   

About JKT Reclamation LLC

JKT Reclamation is the owner of a 20-acre facility in Wilson, Oklahoma with fixed assets including a workshop and office structure, ten 410-barrel storage tanks and other related separation and material handling equipment. In addition to the property, plant and equipment, other assets include two proprietary chemical formulae with additional potential commercial applications. JKT management believe its proprietary chemicals give JKT two key competitive advantages over other similar facilities because:

·    JKT's chemical-based process does not require use of a centrifuge, which are expensive to operate and maintain, the operating costs required to process and recover saleable oil are lower than they would be if a centrifuge were employed in JKT's process; and,

·    JKT owns its chemical formulae, JKT does not have to purchase similar, commercially available chemicals, resulting in substantial cost savings to JKT.

JKT management believe the combination of these two advantages allows JKT to achieve substantially higher operating profit margins than similar facilities and that, long term, JKT can use this cost advantage to increase its market share in its service area.

Forward Looking Statements

Certain statements in this announcement are, or may be deemed to be, forward-looking statements. Forward looking statements are identified by their use of terms and phrases such as "believe", "could", "should", "envisage'', "estimate", "intend", "may", "plan", "potentially", "expect", "will" or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward-looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.