According to the report excerpts from Oil review Africa sayingThe Barracuda field sits in OML 141, an oil mining licence area covering 1,295 sq km in the swamp/shallow waters of the Niger Delta in Nigeria. (Image source: 466654/Pixabay)

The investment will be made by way of an acquisition of a 51% interest in KONH UK Limited, which holds an indirect interest in a risk sharing agreement (RSA) for the field. The acquisition is expected to be completed in  Q2 2021.

Consideration for the Investment may total up to US$1.3mn, of which US$0.25mn is to be settled in cash on completion and the balance is to be settled in equity.

ADM intends to raise approximately US$0.5mn in cash by way of a subscription, for new ordinary shares to, inter alia, provide funding for the investment. The subscription will be effected by way of an accelerated bookbuild, at a price of 4.25 pence per new ordinary share.

As part of the Fundraise, the company intends to enter into subscription agreements with investors and certain of its directors and PDMRs pursuant to which they will subscribe for new ordinary shares (the ‘Subscription Shares’) at the Subscription Price (the ‘Subscription’). The Fundraise is conditional on admission of the new ordinary shares pursuant to the Fundraise to trading on AIM.


The Bookbuild will open with immediate effect following release of this announcement. A further announcement confirming the closing of the Bookbuild and the number of new ordinary shares to be issued pursuant to the Fundraising is expected to be made in due course.


Osamede Okhomina, CEO of ADM Energy plc, said, “The Barracuda Field in OML 141 fits our strategy to target near-term production assets in proven oil and gas jurisdictions and will establish ADM Energy as a multi-asset player in Nigeria. We will bring technical and financial support to the consortium to develop the asset and take it into production in the second half of this year.”

HE Zubair Al Zubair, chairman of Dubai Bridge Investments, stated, “The Barracuda Field, an attractive near-term production asset with significant potential upside, is the type of excellent opportunity we envisioned when we first decided to collaborate with ADM.”