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Aminex to accelerate Kiliwani gas project as it raises £1.85mln

As the separate Ruvuma farm-out continues to move towards completion, a new equity raise will help grow the Kiliwani project
oil well drilling
Aminex sold 127.2mln new shares priced at 1.45p each

Aminex PLC (LON:AEX) told investors it intends to pick up the pace of its development of the Kiliwani gas project, supported by a new equity funding.

The Tanzania-focused gas firm has raised £1.85mln through a placing, selling 127.2mln new shares priced at 1.45p each.

WATCH: Aminex raises US$2.4mln 'to drive operations' and advance Kiliwani gas project

It highlighted that the strategic decision aims to take advantage of depressed market conditions in the oil and gas services industry, and, it expects to bring forward production growth from Kiliwani North as a result of the investment.

Specifically, the capital injection will cover the reprocessing of existing seismic data, the acquisition of new seismic and to support the transition of the Kiliwani South exploration prospect into a ‘drill-ready’ target.

In the meantime, it continues to progress its agreed farm-out of the nearby Ruvuma asset to Zubair Corporation which potentially allows its share of costs to be fully funded to full field development.

The transaction was approved by shareholders last month and efforts to continue to bring the deal to completion.

"We are pleased to receive the continued support of our two largest shareholders in order to accelerate development over Kiliwani, where the company continues to remediate its Kiliwani North 1 well to bring it back into production, and Nyuni, while we make good progress in closing out the Farm-Out of Ruvuma,” said Jay Bhattacherjee, Aminex chief executive.

The new shares issued in the placing equate to 3.49% of Aminex’s existing share capital. Company directors are participating in the funding, subscribing for a total of 4.13mln shares.

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