GM Statement to ADM Energy Plc shareholders
It is with regret that we have, as a major shareholder and also provider of debt capital to ADM Energy, been forced to call a GM to bring about a management overhaul. Quite simply it is our assertions that Osamede Okhomina is unfit for the role of CEO and the board is packed with his acolytes with no independent oversight.
Oliver Andrews has deep connections with EER and the evidence we have seen is that the balance of the BoD have been complicit in keeping the Barracuda field CPR under wraps for several months now aswell as a variety of behind the scenes legal actions by Karra Oil that shareholders should have been made aware of. Indeed, we suspect that the placing carried out in November of 2021 has grounds for annulment by the placees such is the degree of concealment of material information that should have been made public.
Aside from the decimation of equity value that the BoD have presided over during this last 12 months, the broken promises to us that Osamede in particular has made, including his confirmation of voluntarily stepping down at Dec end 2021 if he had not concluded a transformative deal, the level of board director remuneration is frankly incredible in the cases of Richard Carter and Osamede Okhomina – approaching seven figures sterling on a gross basis has been taken (or accrued) by these two alone in the last 2 years whilst shareholders have been almost wiped out by 90%. This is unjustifiable on any measure and it seems the BoD have been unprepared to rein in this degree of largesse. In fact, Mr Okhomina personally promised us salary cuts in 2020/21 that appear not to have happened. This strikes at the very heart of trust and integrity – qualities that are absolutely necessary to run a Plc.
How much more evidence and value decimation is required before action is taken? Well, I am prepared to be that action. Should I be elected to the BoD as a Director (for just a £1 nominal salary) I will carry out the following:
1 – Full forensic investigation into the company’s expenditure this last 24 months including any related party deals
2 – Look to divest our stake in the Aje field that has been simply a cash consumptive hole for years
3 – Bring in a skilled and seasoned and well respected O&G executive within 3 months
4 – Look to conclude either one of the mooted deals (if they make sense) that the BoD has been tantalizing for months or a new fresh direction in the O&G producing arena
5 – More importantly, with our finance partners, back stop a capital injection of a minimum of £1m into the company to stabilize finances and this financing would not be done on a deeply discounted basis.
For all the above reasons, we urge all shareholders to vote IN FAVOUR of the resolutions we have proposed and allow us to take back control of OUR company from management that are dichotomously aligned with shareholders as evidenced by the stock market’s reaction to their stewardship this last 2 years. They have been a monumental failure and it is time for change. Further, I believe should shareholders vote against our resolutions that we will be facing yet more dilution and value destruction. The choice is yours – use your vote wisely.