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Aminex edges towards first gas at Ntorya with Ruvuma farm-out

Snapshot

  • Aminex is an oil and gas explorer focused primarily on Tanzania
  • Farm-out of Ruvuma to ARA will pay for new drilling
Aminex

Quick facts: Aminex PLC

Price: 0.975 GBX

LSE:AEX
Market: LSE
Market Cap: £36.76 m
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What it owns

Ruvuma PSA (Tanzania) gas: 75% working interest through subsidiary Ndovu Resources that will fall to 25% once Zubair deal completes.

Kiliwani North (Tanzania) gas: Aminex owns 63.83% through Ndovu.

Nyuni PSA : Offshore licence surrounding Kiliwani. Aminex owns 100% through Ndovu.

 

How it is doing

In May, Aminex PLC (LON:AEX) agreed an advance of a US$2mln loan from incoming partner ARA Petroleum to pay a tax in Tanzania so that the farm-out transaction can complete.

The move will then allow Aminex and ARA to advance work programmes on the Ruvuma project and see the Ntorya discovery move towards first gas.

Once executed, the farm-out deal will see Aminex carried for US$35mln of its share of costs as Ntorya is advanced into development.

It will effectively mean that Aminex is fully-carried through to material gas production is established at the Ntorya gas field.

Aminex will be due US$5mln in cash upon completion of the transaction plus US$1.97mln of cash over six monthly instalments to reimburse back costs.

The farm-out should see the company fully carried to material levels of production and revenue without the need to return to shareholders for any additional funding for Ruvuma.

Directors received a 90% cut to their salaries, down to a total of £100,000 per annum or £8,000 per month.

 

What the boss says: Robert Ambrose, chief executive

"This Agreement is an important step in what has been a long process towards the Farm-Out with APT and brings first gas from the exciting Ntorya Gas Field ever closer, a milestone to which the company is fully carried."

"Once the farm-out is complete Aminex and Ndovu will look forward to working with APT as we endeavour to extract this important resource for the benefit of the people of Tanzania."

 

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Blue Sky

Aminex has also identified prospective areas within the Kiliwani North and Nyuni Area concessions, which will be the subject of new seismic data acquisition, with plans to acquire some 275 kilometres of 3D seismic.

The aim is to identify undrained compartments of the Kiliwani North structure and to high-grade the Kiliwani South prospect to ‘drill-ready’ status.

Kiliwani South has previously been estimated to host a possible 57bn cubic feet of in-place gas.

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