27th Jun 2016 09:38
LONDON (Alliance News) - Aminex PLC on Monday said it has agreed to extend the term of the Mtwara licence that is part of the Ruvuma production sharing agreement with the Tanzanian Petroleum Development Corp.
The licence is due to expire at the end of this year but the national oil company is now processing the application for a one-year extension for "immediate ministerial approval", Aminex said.
Aminex is the operator of the Ruvuma production sharing contract with a 75% stake, whilst fellow London-listed Solo Oil PLC holds the other 25%.
Aminex also said it has finished discussions with Tanzanian Petroleum Development about transferring the outstanding drilling obligations in the northern Lindi licence into the Mtwara licence, where Aminex and Solo plan to focus on the Ntorya gas discovery.
The northern Lindi licence is covered by the Ruvuma production sharing agreement, and Tanzanian Petroleum Development is supportive of transferring the obligations to Mtwara from Lindi and is seeing ministerial approval before completing the transfer, Aminex said.
"With over a decade of in-country experience and the opportunity to build long-lasting relationships with the Tanzanian Petroleum Development Corp and the Tanzanian government, we are grateful for the support we have received in extending and transferring our work obligations," said Aminex.
"Once consent is received, Aminex and Solo intend to drill the Ntorya-2 appraisal well, which will satisfy the appraisal drilling obligation, and it is then expected that the Solo-Aminex partnership will apply for a 25-year development licence for the Ntorya discovery," the London-listed pair said.
Separately, Aminex said it has also been granted an 18-month extension to its corporate loan facility, which will carry the same terms as before but now expire at the end of January 2018.
Aminex shares were down 4.3% to 1.10 pence per share on Monday morning, whilst Solo Oil shares were flat at 0.235p.
By Joshua Warner; [email protected]; @JoshAlliance
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