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Aminex and Solo Oil boosted by Tanzania contract amendments

The confirmation is a boost to the ongoing farm-out process and is likely to remove a degree of uncertainty, which has seen Aminex shares drift in recent weeks.

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The Tanzanian government has provided written confirmation that it has approved an amendment of the Aminex (LON:AEX) operated Ruvuma production sharing agreement (PSA).

According to the letter from the Tanzanian Petroleum Development Corporation (TPDC), Aminex and its partner Solo Oil (LON:SOLO) no longer have to drill a well this year to secure the exploration asset for another term.

Instead, the venture partners can drill the well in the next exploration period, which starts later this year and runs until late 2016.

The confirmation is a boost to the ongoing farm-out process and is likely to remove a degree of uncertainty, which has seen Aminex shares drift in recent weeks.

In Thursday morning’s statement Aminex said that farm out discussions continue with a number of interested parties, and a successful agreement will allow the Ruvuma PSA to be explored as comprehensively as possible.

A deal will enable further seismic exploration and drilling, while also reducing Aminex’ capital exposure, it said.

'We appreciate TPDC's support for this consent to vary the terms of our PSA which will assist our farm-out process and is very positive for exploration of this large PSA area, which contains multiple leads and prospects,” Aminex chairman Brian Hall said.

Solo’s executive director Neil Ritson, meanwhile, said: "TDPC's support in varying the terms in order to permit additional seismic to be acquired prior to further drilling will greatly assist in the farm-out process and will thereby facilitate further exploration of this exciting area."

The Ruvuma PSA spans 6,000 square kilometres, it hosts the proven Ntorya gas discovery as well as prime exploration, both on and offshore, in the highly prospective Ruvuma basin, which has produced some of the world’s major recent discoveries in the deep offshore areas.

Aminex has a 75% interest in the Ruvuma PSA, while Solo Oil owns the other 25%.

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Price: 0.9349 GBX

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Solo Oil's Neil Ritson on Horse Hill, Ruvuma and plans to refresh the team

Neil Ritson, chairman of Solo Oil PLC (LON:SOLO), discusses with Proactive's Andrew Scott the first batch of production testing results from Horse Hill,  the decision by their partner at Ntorya, Aminex plc (LON:AEX) to farm-out two-thirds of its 75% interest in the project and the...

on 19/7/18

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