Tanzania Delay Hits Aminex, Solo
UK explorer Aminex is now expecting Tanzanian government approval for Ruvuma farm-out to ARA Petroleum Tanzania after the long-stop extension to October 31, it said August 16. Shares in it and in partner Solo both fell in early trading. However, it will not be the first time that the long-stop farm-out will have been postponed.
Aminex said the "ongoing review of all oil and gas companies' production-sharing agreements in-country continues to be the cause of the delay." On the other hand, the reprocessing of the select 2D seismic lines over the Kiliwani North development licence acreage is complete and the company has slashed its monthly general administration expenses by about a third since last year.
The farm-out, as Aminex parts with two thirds of its 75% stake, will yield a $5mn cash inflow and a $35mn carry through the further appraisal and development of the Ntorya gas-field. In the meantime, progress is being made at Kiliwani.
Aminex is also still waiting for government approval for an extension of the Mtwara licence and transfer of the interest and operatorship of the PSA.
UK independent Solo, which holds the other 25% of Ruvuma, said that it was "wholly supportive of the operator's proposed work programme that aims to move the JV closer to re-establishing production from the field, whilst also gaining important reservoir data that can be used for future field development."
But while it believes there is "good upside potential," it said its growth strategy is predicated on establishing sustainable cash flow and we therefore look forward to seeing production from Kiliwani North-1 back on line in due course. And the current situation "continues to reaffirm that the board have taken the right strategic decision to diversify the business in terms of geography and asset type, and take greater control over our future."