ADM Energy pays $3m to increase stake in EER's license in western Nigeria

  • Feb 24, 2020
  • Stock Market Wire

StockMarketWire.com - Oil and gas investing company ADM Energy said it had entered into a sale and purchase agreement with EER to acquire a further 2.25% stake in oil mining lease no. 113, which included the Aje field in Nigeria, for £3m.

OML 113 was located in the western Nigeria offshore Dahomey basin in water depths ranging from 100 to 1,000 metres.

The transaction would increase ADM Energy's stake in the mining lease to 4.9%. The $3m payment was satisfied by by the issue of $2m in shares and $1m in cash.

Upon completion of the deal, ADM's net 2P reserves would increase from 8.9m barrels of oil to 16.4 MMboe, with net daily production expected to increase to approximately 273 bopd from 148 bopd.

At 10:04am: [LON:ADM] Admiral Group PLC share price was -32.5p at 2242.5p

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