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ADM Energy PLC (LON:ADME) has teamed up with a Dubai-based investment vehicle to source and develop upstream oil and gas field investment opportunities jointly in Sub-Saharan Africa.
Under the terms of the cooperation agreement, privately-owned Dubai Bridge Investments (DBI) will be responsible for providing or sourcing funding for any agreed projects that ADM finds.
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Projects for investment or acquisition that are approved are likely to be incorporated into new joint ventures, subject to a separate agreement each time.
ADM said it has already identified “several potential targets” and will be progressing through the evaluation and due diligence process with DBI.
The move follows a similar strategic alliance with commodity trading group Trafigura.
In a statement, Osamede Okhomina, chief executive officer of ADM Energy, said: “The agreement with Dubai Bridge Investments will help us pursue and finance acquisition opportunities in the oil and gas sector in Sub-Saharan Africa.”
“Combined with the Trafigura MOU to provide project finance in return for exclusive rights to market crude oil, the DBI financing enables us to acquire stakes not just in producing fields, but also in proven undeveloped oil and gas fields.
“It is a further endorsement of the team and our strategy as we aim to broaden our investment portfolio by sourcing projects with attractive risk-reward profiles. We are already in discussions with DBI to progress potential investment opportunities and look forward to updating the market as appropriate.”
ADM shares jumped 11% to 6.78p on Tuesday morning.
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