ADM Energy Restructures Eco Oil Stake, Boosts Exposure to Oklahoma Reclamation Asset

An announcement from ADM Energy plc ( (GB:ADME) ) is now available.

ADM Energy has reorganised its investment in the JKT group, restructuring its exposure to an oil reclamation facility in Wilson, Oklahoma, into a new vehicle, Eco Oil Disposal, LLC, in which its subsidiary Vega Energy USA holds a 60% stake alongside management. Through Eco Oil’s purchase of JKT Technologies, the owner of the JKT Wilson operating entity, ADM has simplified its ownership chain and shifted the business to trade under the Eco Oil name while removing more than US$1m of legacy liabilities linked to its former indirect holding via SW Oklahoma Reclamation. The US$808,000 consideration for acquiring JKT Technologies is being met through a mix of new equity, cash funded by a previously announced financing agreement, and assumed liabilities, and is accompanied by an earn-out that will provide JKT Reclamation with additional payments tied to future production and oil prices over six years. As part of the deal, ADM will issue 296.3 million new shares, bringing its total share capital to about 2.09 billion on admission to AIM, with the consideration shares locked in for 12 months and further debt-for-equity conversions by creditors, including directors, expected. The reorganisation materially increases ADM’s economic interest and operational control over the Oklahoma reclamation operations, with its effective economic exposure rising from roughly 41.4% to 80% of distributable profits during the initial payout phase and then stabilising at 60%, strengthening oversight of the asset and aligning management incentives as the company seeks to enhance cash flows from its US portfolio.

More about ADM Energy plc

ADM Energy PLC is a natural resources investing company listed in London, Frankfurt and Berlin, with a portfolio that includes a 100% interest in Vega Oil and Gas and a carried stake in the Altoona oil lease in California, a majority economic interest in Eco Oil Disposal and its associated JKT Technologies and JKT Wilson operations in Oklahoma, a 42.2% interest in OFX Technologies and its oilfield services subsidiary Efficient Oilfield Solutions, and a profit interest in the offshore Aje Field in Nigeria. Its strategy focuses on acquiring and managing upstream and midstream energy assets across North America and West Africa, targeting oil production, reclamation and related technologies.

Technical Sentiment Signal: Sell

Current Market Cap: £949.8K

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