Loan Facilities Update

22 June 2021

ADM Energy PLC 

("ADM" or the "Company") 

Loan Facilities Update

ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resources investing company, provides an update on its loan facilities agreement announced on 25 August 2020.

In August 2020, the Company entered into a definitive agreement with a consortium of investors (the "Lenders") raising, in aggregate, £200,000 through unsecured loan facilities ("Loan Facility"). The Loan Facility, which was due to mature on 15 August 2021, remains outstanding in full.

The Company has now entered into agreements with the Lenders to extend the terms of the Loan Facility as follows:

·    £100,000 of the Loan Facility extended to 31 December 2021, at no interest, in consideration of 2,352,941 warrants exercisable at 4.25 pence each, being the placing price of the most recent fundraise; and

·    £110,000 of the Loan Facility (comprising the principal and accrued interest) extended to 30 June 2022 in consideration of fixed interest of £11,000 and 2,352,941 warrants exercisable at 4.25 pence each, being the placing price of the most recent fundraise.

Pursuant to the terms of the Loan Facility, the Lenders were issued with 4,705,882 warrants ("Existing Warrants") in aggregate, following the rebasing of the Existing Warrants as announced on 24 March 2021, which are due to expire on 25 August 2022. Also in consideration of the extended terms, the Existing Warrants will be cancelled and reissued together with the 4,705,882 new warrants resulting in the issue of 9,411,765 warrants at 4.25 pence each with an expiry date of 30 August 2023.

All other terms of the Loan Facilities remain unchanged.

Osamede Okhomina, CEO of ADM Energy, said: "The extension of the loan agreements further demonstrates the lenders confidence in ADM and our growth prospects as we continue our strategy of building a portfolio of assets to deliver value to shareholders."

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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.

The Company also holds an investment in the development of the Barracuda Field, an existing discovery and near-term production asset in the NW part of OML 141, which covers 103 km² in the swamp/shallow waters of the Niger Delta. Four existing wells have been drilled to date and a fifth is intended to be drilled in Q4 2021.

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.