#ADME

A Oil and Gas company focused on high growth in Nigeria

-CEO and Chairman vast experience of Nigerian O&G Geology and Assets

#ADME

Why this piddler is SO interesting?

In February ADM obtained a finance package for up to $100m for developing and acquiring oil and gas assets (part debt part equity)

For a £3m MCap company this has the potential to drive exponential Share Price appreciation

#ADME

Firstly they have doubled their stake in OLM113 which sells their oil at a higher price than Brent Oil trades at

OLM113 is looking to expand their production into 2021

This alone means ADME will increase their net oil production from this asset from
148 bopd 546 bopd

#ADME

Break even $28
Brent Premium estimate $45

$17 profit x 546bopd x 365 days=

$3.39m Operational Profit Per Annum

#ADME

Now we know the CEO and Chairman have vast extensive experience and tunnel vision primary focus on Nigeria as seen below

#ADME

Nigerian Marginal Field Round is currently taking place

57 fields on offer, HUGE companies such as Chevron, Exxon, Shell and BP looking to divest their smaller assets https://www.energyvoice.com/oilandgas/africa/242765/nigeria-launches-marginal-field-round/

#ADME

'Smaller' Assets is a misconception in Nigeria
These will be massive value creating assets for the likes of ADME
-Millions of 2P (Proved + Probable Reserves)
-Producing 1,000-5,000 bopd/ Near Term Potential

It is not cost effective for HUGE companies to own these assets

#ADME

Meaning if smaller companies with the correct management (ADME has a very experienced CEO and Chairman on Nigerian assets and geology)

#ADME

This article highlights the marginal field round was extended, showing early signs the Nigerian Government is struggling to fill the auction

This means it in increasingly likely with less competition ADME will secure a favourable asset and cheaper http://petrobarometer.thecable.ng/2020/06/12/4808/

#ADME

Hence my tweet,

ADME has the
-funds
-experienced management
-opportunity in a depressed market

This is why I think we have found a massive opportunity to realise value at #ADME

#ADME

I believe ADME management can use this funding to acquire 2 further assets and develop them over the next 2 years in conjunction with OLM113 be producing 10,000+bopd

#ADME

IMO Speculative (Conservative) estimate if things come off

10,000bopd @ $15 profit ($45 oil)
300% Dilution (300m Shares)

$54.75 million Operational Profit

P/E 3= $164m / £136m MCap

45p Per Share

I can see why Trafigura are interested

#ADME

As upstream majors continue to seek exit strategies in West Africa, greater opportunities are emerging at low and attractive valuations, even more so in the current macro environment

Only a matter of time