ADM Energy Highlights Successful Start of Production at Vega Oil Wells

2 min read | August 05, 2024 09:26 PM AEST | By Team Kalkine Media

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ADM Energy Highlights Successful Start of Production at Vega Oil Wells — Image source: Shutterstock

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ADM Energy PLC (LSE:ADME) announced on Monday that its Texas-based subsidiary has commenced revenue generation with the start of production at the first of three newly acquired wells.

Acquisition Details and Funding

In June, ADM Energy, a London-headquartered natural resource investment firm, finalized the acquisition of Vega Oil & Gas LLC, which holds three well assets situated in Moore County, Texas. The acquisition deal was facilitated by a capital injection of $150,000 and an additional $100,000 borrowing facility.

Production and Revenue Update

Following the acquisition, the Sneed 415 well, which resumed production in June, produced 430 gross barrels of oil. Consequently, Vega Oil & Gas realized revenue amounting to $25,591 from oil sales during that month.

Infrastructure Development

To further support the development and production capacity of all three wells, ADM Energy has procured the necessary equipment for constructing a new battery tank. This infrastructure is expected to be completed in August.

CEO Stefan Olivier expressed satisfaction with the initial progress of the Vega investment, highlighting the company's positive outlook on the remaining wells. Olivier anticipates that once the tank battery is fully operational, the remaining two wells will also be brought back into production, contributing further to the company’s revenue streams.

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