ADM Energy shares were down 10% to 0.6p in late afternoon trading on Thursday, after the company announced a loss of £2.5 million in FY 2021, narrowed from £6.9 million in FY 2020.
The energy firm reported a revenue surge of 125% to £1.8 million against £800,000 on the back of the recovering oil price and the company’s increased profit interest in the Aje field from 5% to 9.2% in December 2020.
ADM Energy also acquired an indirect interest in a Risk Sharing Agreement for the development of the Barracuda field, and commissioned a Competent Person’s Report (CPR) by Xodus on the operation.
The firm reported a CPR verdict on the Barracuda prospect with a 2U (P50) case, at an NPV10 above $99mm with an IRR of 45%.
ADM Energy mentioned a completed oversubscribed fundraising of £1.2 million in March 2021, along with an additional £475,000 raised in November 2021.
The group also noted a completed post-period fundraising of approximately £561,000 in January 2022.
The company further disposed of 188,778 shares in Superdielectrics Limited for a consideration of £849,501, providing a profit of £656,000 on the firm’s original investment.
“2021 was a good year of progress for ADM Energy. It was our first full year since almost doubling our interest in the Aje Field which helped achieve a significant increase in revenues over the previous year. We also completed an acquisition giving us indirect interest in the Barracuda field, strengthening our foothold in West Africa,” said ADM Energy CEO Osamede Okhomina.
“In parallel to Aje and Barracuda, we continue to target the acquisition of undervalued 2P reserves that can be added to our investment portfolio and have had encouraging discussions with potential partners regarding various opportunities.”
“It remains a buyers’ market as majors look to divest non-core projects presenting opportunities for companies such as ADM who have the network, expertise, and access to capital to progress projects that can potentially bring significant value creation for shareholders.”
