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Aminex and ARA to move ahead with pre-drilling work at Chikumbi-1 well in Tanzania

Aminex will also receive a US$3mln advance from ARA

Aminex PLC -
The Ruvuma project is significant in scale

Aminex PLC (LON:AEX) says it has seen positive movements in Tanzania with the government actively resolving several long-standing issues with other operators in the country.

This bodes well for Aminex’s Ruvuma project and provides confidence to the company and its partners ARA who are now prepared to further advance pre-drilling operations for the Chikumbi-1 well.

The company and ARA will advance works so that drilling of the well can begin as soon as practicable following the satisfaction of the remaining conditions precedent for the project, which are the granting of the Mtwara licence extension and government approval for the transfer of interest and operatorship.

In addition, ARA has agreed to provide a US$3mln advance in instalments to the company, ahead of the completion of the farm-out.

This advance will be offset against the first tranche of the cash consideration payable to Aminex on completion of the farm-out.

The second tranche of the cash consideration of US$2mln, which was initially due 180 days after completion, will now be payable upon completion.

"ARA is suitably encouraged by the ongoing discussions with the Tanzanian authorities to accelerate the planning and preparation for the spud of Chikumbi-1,” said Aminex chairman John Bell.

“Furthermore, these advanced payments demonstrate a commitment to this excellent asset, which when on production will play an important role in meeting domestic demand for gas from the people and businesses of Tanzania and a possible international market through export arrangements with neighbouring countries.”

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Price: 1.05 GBX

LSE:AEX
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Market Cap: £39.59 m
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