Aminex completes Tanzania farm-out to ARA Petroleum

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Aminex completes Tanzania farm-out to ARA Petroleum

Aminex PLC (LON:AEX) has announced the completion of its farm-out deal with ARA Petroleum Tanzania Limited (APT).

“We are delighted to finally complete the farm-out and hand over operatorship of the Ruvuma PSA to APT,” said Robert Ambrose, Aminex chief executive in a statement.

The company now retains a 25% interest in the Ruvuma asset – which includes the Ntorya gas project and exploration areas – and APT will fund a forward programme including the drilling of the Chikumbi-1 well and a new seismic programme over at least 200 square kilometres.

READ: Aminex soar as Ruvuma deal gets government nod

It is also envisaged that APT will advance infrastructure for the key Ntorya project and drill new production wells to target a rate of 140mln cubic feet per day.

APT is to cover up to US$35mln of Aminex’s share of costs for these programmes.

The farminee has supported Aminex financial over the past year as the new partners awaited regulatory sign-off for the deal – APT provided US$5mln to Aminex, with a US$3mln advance on the upfront payment in the farm-out and a US$2mln loan. The loan has been repaid to APT.

Aminex noted that APT, as the new operator of the project, will shortly call an operating committee meeting where it is expected that a programme and schedule of work will be presented for Chikumbi-1.

“We are also extremely grateful to ARA Petroleum for its support over the past 12 months and look forward to the work programme progressing,” Ambrose added.

Proactiveinvestors.co.uk

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