ADM Energy PLC has provided an update on the operations of JKT Reclamation, LLC, in which the company holds a 30.6% economic interest. Following ADM's investment in SW Oklahoma Reclamation, LLC, JKT has leased new equipment to enhance its reclamation site in Wilson, Oklahoma. This includes a 550-barrel capacity mixing tank and two new fluid pumps, aimed at increasing the processing capacity. The company aims to expand production to 3,500 to 4,000 barrels of oil per month after the installation of the new equipment.
In addition, JKT has secured a short-term working capital facility to expedite its growth and is evaluating properties for a second reclamation facility in Texas. ADM Energy has received its first cash distribution from JKT, amounting to US$21,000. The company expects cash distribution levels to grow with production in the coming months. CEO Stefan Olivier expressed optimism, stating, "With the new equipment that has been purchased and will be installed in June 2024, we anticipate increased production, revenue and profitability with growing net cash distributions."
The company also provided details on its investments, including a 46.8% economic interest in OFX Technologies, LLC, and a 9.2% profit interest in the Aje Field, part of OML 113, offshore Nigeria. JKT Reclamation, LLC, owns a 20-acre facility in Wilson, Oklahoma, with fixed assets and proprietary chemical formulae that provide competitive advantages over similar facilities. The company's management believes these advantages will lead to higher operating profit margins and increased market share in its service area.
This update provides insight into ADM Energy's strategic investments and the operational progress of JKT Reclamation, LLC, reflecting the company's efforts to enhance production capacity, revenue, and profitability.