ADM Energy has increased its stake in Vega Upstream JV, the joint venture formed to acquire the Midcon oil and gas assets in Oklahoma.
The oil and gas junior's interest increases to 25%, following a US$200,000 investment after the company's recent placing.
It means ADM now funded US$300,000, alongside JV partner Covenant Oil and Gas, which has so far contributed US$900,000, with Vega investing a total of US$1.2m. And, ADM noted it retains the right to raise its asset interest, up to 35%.
"We continue working to complete this transformational acquisition while planning a work programme we plan to implement immediately," said Randall J. Connally.
The company noted that the increased stake lifts its budgeted average monthly revenue from US$72,400 to roughly US$96,000 over the next 12 months, based on the Haas report and prevailing commodity prices.
The Midcon Assets include an average per-well working interest of 49.4% across 28 operated wells in Custer County, Oklahoma, with recent net production of c.3.2 mmcfe/d (533 BOE/d). That represents around 58% of revenue from oil and liquids, plus 250 non‑operated wells and a midstream gathering system moving c.4.4 mmcf/d with a $0.74/Mcf toll.
