ADM Energy plc has released its half-yearly results for the six months ended June 30, 2023. The company highlights its acquisition of Blade Oil V, LLC (Blade V) for $1.6 million, which includes five oil leases, including one in the Midway-Sunset Oilfield in the US. The primary focus of the portfolio is a 70% working interest in a three-well drilling program targeting shallow oil production on the Altoona Lease. ADM also issued secured convertible loan notes worth up to $1.5 million through subscription agreements concurrent with the acquisition of Blade V.
ADM Energy continues to work with the Aje Partners to progress development plans for the Aje Field, including the replacement of the Floating Production Storage and Offloading (FPSO) vessel. The company's CEO, Stefan Olivier, expressed satisfaction with the progress made since joining ADM earlier in the year. He sees the acquisition of Blade V as a cornerstone project for the company and believes it ties in with their strategy to identify near-term cash generating opportunities in established oil and gas regions. Olivier also mentioned that ADM has significantly reduced costs and restructured short-term debt on its balance sheet, putting the company on a more solid footing.
The company plans to drill three wells at the Altoona Lease, which is located within the Midway-Sunset Oilfield, one of the largest oil fields in California. ADM believes that the Altoona Lease can benefit from the infrastructure and pipelines built by Chevron Corporation, which operates in the area. ADM also highlighted its ongoing discussions with JV partners to replace the current FPSO at the Aje Field and unlock its vast wet gas potential.
ADM Energy announced the appointment of Stefan Olivier as CEO in April 2023. Olivier has extensive experience in the oil and gas sector and was previously the co-founder of MX Oil plc, which is now ADM Energy. The company also strengthened its board with the appointment of Claudio Coltellini as a Non-executive Director. Coltellini has approximately 15 years of investment experience in the US oil and gas sector.
Overall, ADM Energy is focused on identifying investment opportunities in near-term producing assets in proven oil and gas jurisdictions to enhance its investment portfolio. The company's recent acquisition of Blade V and its ongoing work with the Aje Partners demonstrate its commitment to this strategy.