23 May
2024
ADM Energy
PLC
("ADM" or
the "Company")
JKT Reclamation Facility
Operations Update
ADM Energy PLC (AIM: ADME; BER and
FSE: P4JC), a natural resource investing company, is pleased to
provide the following update with respect to operations of JKT
Reclamation, LLC ("JKT"), the revenue and cash flow generating oil
reclamation business in which the Company owns a 30.6% economic
interest.
Following ADM's investment in SW Oklahoma
Reclamation, LLC, the parent company of JKT (as announced on 8
April 2024), JKT has leased the following equipment for the
reclamation site: (1) a 550-barrel capacity mixing tank in order to
combine and agitate the processing fluids. Prior to this
acquisition the mixing of the fluids was done manually, therefore
this purchase will significantly increase the mixing capabilities
in the reclamation process; and (2) two new fluid pumps that are
able to move 20 gallons per minute, which will increase the
movement of fluids between the different phases of the reclamation
process.
This new equipment will assist in increasing the
processing capacity of the JKT's reclamation facility in Wilson,
Oklahoma and is scheduled to be delivered and installed in early
June 2024.
The gross barrels of oil produced at the facility
from 1 January 2024, the effective date of the JKT transaction, is
as follows:
|
Jan 2024
|
Feb 2024
|
Mar 2024
|
Apr 2024
|
Gross Oil Volume Produced (bbls)
|
-
|
944
|
1,475
|
1,031
|
Following delivery and installation of the new
equipment, JKT is targeting to expand production to 3,500 to 4,000
barrels of oil per month. JKT has also entered into a short-term
working capital facility ("Facility") that allows for short-term
advances against oil sold, payable within 90 days, at a cost of
1.75% per month on the quantum of funds borrowed. The Facility will
provide JKT the short term funds required to expedite its
growth.
Additionally, JKT has started
evaluating properties for a second reclamation facility in the
State of Texas. Further details regarding the second
reclamation facility will be provided in due course.
ADM is further pleased to announce
that it has received its first cash distribution from JKT in the
amount of US$21,000.00. The Company expects cash distribution
levels to grow with production in the coming months. The Company
will receive 42.0% of cash distributions until it has received
US$356,250.00 and 30.6% thereafter
Commenting on the monthly JKT
operations update Stefan Olivier, CEO, stated: "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."
Market Abuse Regulation (MAR) Disclosure
The information contained within
this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018 ('MAR'). Upon the
publication of this announcement via Regulatory Information Service
('RIS'), this inside information is now considered to be in the
public domain.
Enquiries:
ADM Energy
plc
|
+44 7495 779520
|
Stefan Olivier, Chief Executive Officer
|
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www.admenergyplc.com
|
|
|
|
Cairn Financial
Advisers LLP
|
+44 20 7213 0880
|
(Nominated Adviser)
|
|
Jo Turner, James Caithie
|
|
|
|
ODDO BHF Corporates
& Markets AG
|
+49 69 920540
|
(Designated Sponsor)
|
|
Michael B. Thiriot
|
|
|
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Gracechurch
Group
|
+44 20 4582 3500
|
(Financial PR)
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Harry Chathli, Alexis Gore, Henry Gamble
|
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About ADM Energy PLC
ADM Energy PLC (AIM: ADME; BER and
FSE: P4JC) is a natural resources investing company with
investments including a 30.6% economic interest in JKT Reclamation,
LLC; a 46.8% economic interest in OFX Technologies, LLC
(www.ofxtechnologies.com);
and a 9.2% profit interest in the Aje Field, part of OML 113, which
covers an area of 835km² offshore Nigeria. Aje has multiple oil,
gas, and gas condensate reservoirs in the Turonian, Cenomanian and
Albian sandstones with five wells drilled to date.
About JKT Reclamation LLC
JKT Reclamation is the owner of a
20-acre facility in Wilson, Oklahoma with fixed assets including a
workshop and office structure, ten 410-barrel storage tanks and
other related separation and material handling equipment. In
addition to the property, plant and equipment, other assets include
two proprietary chemical formulae with additional potential
commercial applications. JKT management believe its proprietary
chemicals give JKT two key competitive advantages over other
similar facilities because:
· JKT's
chemical-based process does not require use of a centrifuge, which
are expensive to operate and maintain, the operating costs required
to process and recover saleable oil are lower than they would be if
a centrifuge were employed in JKT's process; and,
· JKT owns
its chemical formulae, JKT does not have to purchase similar,
commercially available chemicals, resulting in substantial cost
savings to JKT.
JKT management believe the
combination of these two advantages allows JKT to achieve
substantially higher operating profit margins than similar
facilities and that, long term, JKT can use this cost advantage to
increase its market share in its service area.
Forward Looking Statements
Certain statements in this
announcement are, or may be deemed to be, forward-looking
statements. Forward looking statements are identified by their use
of terms and phrases such as "believe", "could", "should",
"envisage'', "estimate", "intend", "may", "plan", "potentially",
"expect", "will" or the negative of those, variations or comparable
expressions, including references to assumptions. These
forward-looking statements are not based on historical facts but
rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the
amount, nature and sources of funding thereof), competitive
advantages, business prospects and opportunities. Such
forward-looking statements reflect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors.