ADM Energy PLC MOU signed with Trafigura Pte Ltd (6631B)
03 Febbraio 2020 - 8:00AM
UK Regulatory
TIDMADME
RNS Number : 6631B
ADM Energy PLC
03 February 2020
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO
CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE
MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE
IN THE PUBLIC DOMAIN.
3 February 2020
ADM Energy plc
("ADM" or the "Company")
MOU signed to create a proposed strategic alliance with
Trafigura
that enables the development and financing of energy projects in
Africa
ADM Energy PLC (AIM:ADME), an oil and gas investing company
quoted on AIM, has entered into a non-binding memorandum of
understanding ("MOU") with Trafigura Pte Ltd ("Trafigura"), a
market leader in the global commodities industry whose core
business is the physical trading of oil and petroleum products and
metals and minerals, to develop investment opportunities in the
African energy sector.
Under the terms of the MOU, it is the intention of ADM and
Trafigura (together, the "Parties") to create a strategic alliance
where ADM will act as the sponsor for investment opportunities in
the African energy sector ("Projects") which will be presented to
Trafigura for consideration as a trading counterparty, or financing
provider.
ADM, as principal, will be responsible for originating,
analysing, developing, structuring and negotiating the Projects
with counterparties and presenting the Projects to Trafigura for
further evaluation. Subject to a Project being approved by
Trafigura ("Approved Project"), the Parties will negotiate a
definitive agreement for each Approved Project.
Trafigura will be entitled to provide ADM with conditional
pre-financing of up to US$100 million for the acquisition or
development of Approved Projects. It is anticipated that Trafigura
may subscribe for up to US$20 million in convertible loan notes in
ADM as definitive agreements and project funding for Approved
Projects are agreed.
Subject to any financing provided, Trafigura will have the
exclusive rights to market the crude oil produced by the Approved
Project on market terms and for an agreed period. In addition, ADM
and Trafigura will cooperate to structure and arrange complementary
debt and equity funding for approved projects as may be required to
supplement any financial support provided by Trafigura.
The MOU, which has a term of 12 months unless terminated earlier
by mutual agreement, constitutes a statement of current intentions
and is not legally binding on ADM or Trafigura. There is no
certainty that projects originated by ADM will be approved by
Trafigura for financing and, as ADM is currently an Investing
Company pursuant to the AIM Rules, the obligations it may be
required to perform under any eventual agreement, if entered into,
may trigger a reverse takeover pursuant to Rule 14 of the AIM
Rules.
Osamede Okhomina, CEO of ADM, said: "I have enjoyed a long
relationship with Trafigura and this Memorandum of Understanding is
an endorsement of the Company's strategy, signalling a new stage of
development for ADM. We have identified a number of excellent
investment opportunities in Nigeria and West Africa. With our
extensive network, and the potential access to capital this MOU
gives to ADM, we believe the Company is well positioned to capture
future opportunities."
James Josling, Head of Africa Energy Trading for Trafigura,
said: "Trafigura has been active in Africa for more than 20 years,
helping African producers and refiners of oil, metals and minerals
finance their operations, manage their exports and ultimately
connect with their end customers around the world. Today's signing
shows our intention to work with an upstream investing company that
has strong roots in Nigeria and West Africa, and is well placed to
develop its potential while being committed to practicing good
corporate governance as evidenced by ADM's London quotation."
For further information please contact:
ADM Energy plc +44 20 7786 3555
Osamede Okhomina, CEO
Cairn Financial Advisers LLP +44 20 7213 0880
(Nominated Adviser)
Jo Turner, James Caithie
Fox-Davies Capital Ltd +44 20 3884 8450
(Lead Broker)
Daniel Fox-Davies, Lionel Therond
Pello Capital Limited +44 20 3700 2500
(Joint Broker)
Dan Gee
Luther Pendragon +44 20 7618 9100
(Financial PR)
Harry Chathli, Alexis Gore, Joe Quinlan
About ADM Energy plc
ADM (AIM:ADME) is a natural resources investing company with an
existing asset base in Nigeria. ADM holds a 5% equity investment in
the Aje Field, part of OML 113, which covers an area of 835 sq km
offshore Nigeria. Aje has multiple oil, gas and gas condensate
reservoirs in the Turonian, Cenomanian and Albian sandstones with
five wells drilled to date.
ADM is seeking to build on its existing asset base in Nigeria
and target other investment opportunities across the West African
region in the oil and gas sector with attractive risk reward
profiles such as proven nature of reserves, level of historic
investment, established infrastructure, route to early cash flow
and exploration upside. www.admenergyplc.com
About Trafigura Pte Ltd.
Founded in 1993, Trafigura is one of the largest physical
commodities trading groups in the world. Trafigura sources, stores,
transports and delivers a range of raw materials (including oil and
refined products and metals and minerals) to clients around the
world. The trading business is supported by industrial and
financial assets, including 49.3 percent owned global oil products
storage and distribution company Puma Energy; global terminals,
warehousing and logistics operator Impala Terminals; Trafigura's
Mining Group; and Galena Asset Management. The Company is owned by
over 700 of its 8,000 employees who work in 80 offices in 41
countries around the world. Trafigura has achieved substantial
growth over recent years, growing revenue from USD12 billion in
2003 to USD 171.5 billion in 2019. The Group has been connecting
its customers to the global economy for more than two decades,
growing prosperity by advancing trade. www.trafigura.com
This information is provided by RNS, the news service of the
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Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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