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Highlights
- ADM secured a 30.6% net interest in JKT Reclamation, generating revenue of $480,050 in H1 2024, and received $35,000 in distributions.
- Acquired Vega Oil and Gas, LLC, achieving net revenue of $26,827 in June 2024 from the Sneed 415 well.
- Ongoing development and monetization discussions for the Aje Field (OML 113).
ADM Energy plc (LSE:ADME), a natural resources investment company, has announced its financial and operational results for the six months ending June 30, 2024. Despite challenges in capital resources, ADM Energy has made significant progress in advancing its investment portfolio, focusing on oil production and asset development in key regions.
JKT Reclamation, LLC
ADM reported strong initial results from its 30.6% net economic interest in JKT Reclamation, effective from January 1, 2024. During the first half of the year, JKT achieved gross sales of 5,029 barrels of oil, generating $480,050 in revenue. ADM's 100% interest in JKT yielded pre-tax cash flow of $26,573, while the company received $35,000 in distributions, representing approximately 70% of the total distributions until ADM recovers 150% of its initial investment.
Looking forward, ADM has joined JKT's other stakeholders to upgrade production facilities starting in July 2024. These enhancements aim to boost sales volumes and improve operational margins, reflecting the company's commitment to optimizing asset performance.
Vega Oil and Gas, LLC
The acquisition of Vega Oil and Gas, LLC was completed in June 2024, giving ADM full ownership of the entity. Vega holds interests in three wells in Moore County, Texas: Sneed 415, Thompson 7330, and 7331.
During June, the Sneed 415 well produced 348.47 barrels of oil, generating net revenue of $26,827. ADM recorded a net pre-tax profit of $7,909 for the month. Plans are underway to bring the Thompson 7330 and 7331 wells into production. Additionally, ADM is constructing a new tank battery to facilitate and streamline production from these wells.
Aje Field, OML 113
ADM continues to work with its partners to advance development plans for the Aje Field while simultaneously exploring options to monetize its interest. The Aje Field remains a strategic part of ADM's portfolio as the company seeks to unlock long-term value from this asset.
Financial Position
As of June 30, 2024, ADM reported £66,000 in cash and cash equivalents. While investments in JKT and Vega have begun generating cash distributions, ADM remains in a constrained capital position. The board is actively monitoring its working capital needs to ensure stability and progress
