ADM Energy Plc told investors that it is “well-positioned for a period of aggressive growth”, albeit the firm also noted the negative impact of project delays at the Aje field offshore Nigeria.
Following on from significant changes to its board last year, including the appointment of Nigerian oil specialist Osamede Okhomina, the company is now seeking to expand its asset portfolio.
It intends to leverage management’s extensive network of contacts across Africa and it has already identified a number of investment opportunities. Work is underway to assess possible investments at varying stages of the project cycle – including appraisal, development and producing assets.
ADM said that it is actively engaged in talks with a number of parties including potential local project partners, funding partners and offtake buyers.
The company said its main approach will be to option appraisal assets where oil and gas has already been discovered. It expects industry-wide divestment programmes, among oil majors, will open up assets comprising some 500,000 barrels of oil per day (bopd) of production for purchase by independent operators.
“For these deals to be financed, they will require local expertise, close relationships and experience of operating in the region,” ADM said.
It noted that large oil trading firms have become defacto financiers of many asset acquisitions, but said such buyers often struggle to find partners with the necessary credibility. Through its expansion plan, ADM also seeks to gain financial support with debt financing, and use its equity as transaction currency.