ADM Energy Plc (LON:ADME) has told investors that operations at the OML 113 assets in Nigeria remain largely uninterrupted during the global coronavirus pandemic, with production levels remaining stable.
In a corporate update, the company said it is “well-positioned to withstand current market volatility”, with coronavirus (COVID-19) protection measures implemented to reduce cost base. It also said it has secured finance for working capital purposes and has agreed a two-month extension for a refundable deposit payment.
The company said its board, operators and joint venture partners are also focused on seeking ways to mitigate the impact of the oil price reduction.
“Whilst COVID-19 and the depressed oil price present a challenging environment, the board and I are pleased to report that OML 113 has maintained its operational levels,” Osamede Okhomina, ADM’s chief executive said in the statement.
He added: “As a result of the steps taken, ADM has positioned itself to better withstand current market volatility and still pursue its core investment strategy. In fact, undervalued assets that were already due to be divested by oil majors have now seen their value depress further and may yet represent attractive investment opportunities once we move beyond this immediate market environment.
“In the near term, the board will continue to closely monitor the impact of the pandemic and will update the market should there be a further change in circumstances.”
Published at Mon, 27 Apr 2020 08:06:00 +0000-ADM Energy says Nigeria operations remain largely uninterrupted, production is stable