Aradel Holdings Plc, through its subsidiary, Aradel Energy Limited, has signed a sale and purchase agreement to acquire the 100% interest in the Olo and Olo West Marginal Fields from TotalEnergies EP Nigeria and NNPC Limited (“the Acquisition”). The Olo and Olo West Fields were formerly part of OML 58.

The Acquisition was completed for a consideration of US$16 million, plus US$3.5 million of deferred and conditional payments. The Petroleum Mining Lease (for Olo) and Petroleum Prospecting License (for Olo West) will be issued after the payment of relevant Ministerial Consent fees and completion of approved Field development plans within designated timeframes.

Aradel Holdings Plc is Nigeria’s foremost integrated independent energy company, delivering critical energy solutions in a sustainable and responsible way. Aradel Holdings was incorporated on March 25, 1992 (as the Midas Drilling Fund), changed its name to Niger Delta Exploration and Production Plc in November 1996, and assumed its current name in May 2023.

The Company operates through its subsidiaries and an affiliate company:

• Aradel Energy Limited (100%), a wholly owned subsidiary of Aradel Holdings, as well as the Operator of the Ogbele and Omerelu Fields.
• Aradel Gas Limited (100%), a wholly owned subsidiary established to pursue investment opportunities in the gas sector.
• Aradel Investments Limited (100%), also a wholly owned subsidiary established to hold and manage the group’s non-oil & gas assets.
• Aradel Refineries Limited (95%), an independent operating midstream entity, underscoring Aradel’s ’s commitment to attaining Energy Independence in Nigeria.
• ND Western Limited (41.67%), with four limited liability companies (being Aradel Energy, Petrolin, First Exploration & Petroleum Development Company, and Waltersmith Petroman Oil) as shareholders.

Summary Of Operational and Fininancial Update As At H1 2024

Operational Highlights

• Production and Refining:
  • Crude oil production of 12,957 bbls/day up 51.7% (H1 2023: 8,544 bbls/day)
  • Gas production of 40.4 MMscfd (7,132 boepd) up by 75.4% (H1 2023: 23.0 MMscfd (4,067 boepd))
  • Refined petroleum products sold 122.2 mmltres up by 114.4% (H1 2023: 57.0 mmltres)
• Average realised oil price per barrel of $87.5 (H1 2023: $74.7)
• Average realised gas price per mscf of $1.5 (H1 2023: $1.8)
• Underlying cash operating cost (boe) of $20 (H1 2023: $20)

Financial Review

Foreign exchange dynamics, from the floating of the naira in 2023, played a major role in the financial performance of the Company. Average exchange rate in H1 2024 was ₦1,345:US$1, and ₦482: US$1 in H1 2023.

Revenue increased by 260.2% to ₦268.3 billion (H1 2023: ₦74.5 billion). This was driven by:

• 332.2% increase in export crude oil revenue (63.8% of total revenue) to ₦171.1 billion (H1 2023 ₦39.6 billion; 53.2% of total), attributed to increased production levels, significant impact of improved utilization of the Trans Niger Pipeline (TNP) on which there has been reduced crude losses, and additional value from the ACE route with resultant higher crude oil lifting of 1.5Mbbls in H1 2024 vs 1.1Mbbls in H1 2023.
• Gas revenue recorded a 321.8% increase to ₦15.5 billion (5.8% of total), due to higher production volumes (H1 2023: ₦3.7 billion; 4.9% of total revenue).
• 161.6% increase in refined products’ revenue (30.4% of total) to ₦81.7 billion (H1 2023: ₦31.2 billion; 41.9% of total revenue) due to increased production and sales volumes of 122.2 mmltres, up by 114.4% (H1 2023: 57.0 mmltres).