Aminex has said it continues to await Tanzanian Government approval for Ruvuma Farm-Out to Oman based ARA Petroleum Tanzania Limited (APT) an affiliate of Eclipse Investments, the largest shareholder in Zubair Corporation post long-stop date extension to 31 October 2019.
The farm-out once approved will deliver a $5m cash inflow and a $35 million carry through the further appraisal and development of the Ntorya gas-field. The $5 million cash would be received in two tranches, $3 million payable on closing and the remaining $2 million 180 days later and fully carry Aminex for its share of costs up to $35 million in respect of its remaining 25% interest (post-transaction) (the ‘Aminex Carry’), which implies a potential expenditure during the carry period of up to $105 million for the aggregate 75% working interest held by APT and Aminex
The Farm-Out will also accelerate the development of the Ntorya project, including carrying Aminex through to a minimum gross production rate of 40 MMcf/d and be self-funded through a full field development project. In the event that the minimum production target of 40 MMcf/d is achieved prior to Aminex’s 25% interest having been carried for the full $35 million the agreement shows that APT will assign one quarter of its share of profit gas to pay the unspent Carry amount until the full $35 million is realized by Aminex.
“We have cut costs to appropriate levels and we are awaiting Tanzanian Government approval to move forward with the Ruvuma farm-out to ARA Petroleum of Oman, which upon completion will deliver a $5m cash inflow and a $35 million carry through the further appraisal and development of the Ntorya gas-field. In the meantime, progress is being made at Kiliwani,” Aminex Chairman John Bell said.
The approval is also key to gain an extension of the Mtwara Licence and transfer of the interest and operatorship of the PSA.
The company adds it has continued with its commitment to reduce its General and Administration (G&A) expenses, particularly given the delays in completion of the Ruvuma Farm-Out. On a like-for-like basis, the current monthly G&A expense for the Group has been reduced by approximately 34% from 2018 levels.
Meanwhile in Kiliwani North Aminex says the reprocessing of the select 2D seismic lines over the Kiliwani North Development Licence acreage is complete with minor re-iterations requested from the processor. The company adds that data from the reprocessing will benefit the design of a 3D seismic survey and remapping of the licence, using the reprocessed lines, will occur once it has received the final data.
The Company continues to source equipment to perform the reentry and remedial work on Kiliwani North-1. The re-entry, which has been designed to be carried out at minimal costs, is of value to investigate fluid levels in the well and provide an accurate bottom hole pressure measurement which will provide useful reservoir data for future operations and production and equipment is being ordered.