ADM Energy PLC has provided an update on the internal technical review of its 12.3% cost share and 9.2% profit share interest in OML-113, Aje Field, offshore Nigeria. The company has been approached by financial and strategic investment groups expressing interest in its Aje Field interest and is in discussions with several of these groups. The Operating Committee initiated the reprocessing of 3D seismic covering the Aje Field and a significant portion of the OML-113 License area, with a field-wide structural reinterpretation currently underway.
The company intends to have the reinterpretation of the Aje field 3D seismic dataset reviewed by an independent technical consultant and provide an update to the field volumetrics and recoverable reserves and resources via a revised Competent Persons Report (CPR). The Aje Partnership believes that the results of the reprocessed Aje field 3D seismic dataset may have a material uplift on the potential and value of Aje, as well as financing options available to the company for its interest in Aje Field.
The Aje Field, in which the company holds a 12.3% cost share and 9.2% profit share interest, has produced more than 5 million barrels of oil to date and is rich in gas and condensate reserves. The field represents 8.9 million barrels of oil equivalent resources with a mid-case NPV10% of US$25.9 million to ADM's interest based on a US$70 oil price scenario.
Stefan Olivier, CEO of ADM Energy PLC, expressed the board's encouragement by the Aje Partnership's assessment of the newly reprocessed 3D seismic dataset and the anticipation of a material uplift to the assessment of the Aje field and the intrinsic value of the asset. The information contained in the announcement is considered inside information and is now in the public domain.
The company is a natural resources investing company with an existing investment representing approximately 46.9% economic interest in OFX Technologies, LLC and a 9.2% profit interest in Aje Field, part of OML 113, which covers an area of 835km offshore Nigeria.