9th May 2014 07:14
LONDON (Alliance News) - Aminex PLC saw its shares surge Friday after it said it had reached a deal to sell its US business to Northcote Energy Ltd and Springer Oil and Gas LLC for USD5 million in cash and shares, a move that will leave it focused on Africa.
In a statement, the oil and gas company said it will get USD150,000 in cash, USD350,000 worth of AIM-listed Northcote Energy shares, and a production payment of USD10 a barrel until it has recovered USD4.5 million. The production payments will start on January 1, 2015.
Under the heads of terms agreement, which comes before a formal contract is signed, Northcote and Springer have agreed to inject a minimum of USD1 million in development capital into the assets they are buying over the next year to boost production, Aminex said.
When the deal is completed, Aminex will be left with is assets in Tanzania, some of which are on the verge of producing. The company had previously said it wanted to focus on growing in Africa.
"With first gas scheduled for 2015 from the Kiliwani North field and significant progress being achieved on the seismic programme in Ruvuma, the management team looks to the future with confidence," Aminex Chief Executive Jay Bhattacherjee said in a statement.
Aminex shares were up 3.5% at 0.75 pence early Friday, while Northcote Energy shares were up 2.2% at 0.639 pence.
By Steve McGrath; [email protected]; @SteveMcGrath1
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