StockMarketWire.com - Aminex's planned sale of a 25% interest in the Kiliwani North development licence and a 50% interest in the Ruvuma PSA to Bowleven, announced to shareholders on 19 November, will not proceed.

An update says that in discussions during the due diligence process, a forward work programme could not be agreed which would be acceptable to Aminex, its lender, the Tanzanian authorities and Solo Oil plc. As a consequence, the contingent agreement between Solo and Aminex for a transfer of a 12.5% in the Ruvuma PSA interest is no longer applicable and the partners will maintain their existing interests. Aminex will retain its existing interests as follows: - 55.575% (operator) interest in the Kiliwani North development licence, for which LR Senergy has ascribed 28 BCF contingent (2C) resources (gross) and which is about to come on-stream following the signing of a Gas Sales Agreement in January

- 75% (operator) interest in the Ruvuma PSA, where it is making progress towards the recompletion of the Ntorya 1 discovery well, and the drilling of the Ntorya 2 appraisal well. This programme has been designed with the support of TPDC to fast-track the field development and potentially build an early production system for local power demand.

The Kiliwani North-1 well is currently undergoing final well integrity testing prior to first production. This follows the signing of a gas sales agreement in January. The gas price agreed of $3.00 per mmBTU, approximately $3.07 per mcf, is indexed-linked to the US CPI and not reliant on global oil prices. The company will be paid in US dollars for all produced gas including commissioning and testing gas.

Chief executive Jay Bhattacherjee said : "The recent completion of the gas sales arrangements for the Kiliwani North field opens a new chapter for Aminex in Tanzania. With the commencement of first production from the Kiliwani North 1 well, we expect to book our first reserves in-country.

"The company continues to focus on appraising Ntorya where we have planned an exciting programme prior to applying for a 25 year development licence. Aminex is currently assessing alternative ways to monetise its gas in the Ruvuma PSA acreage, where we already have a commercial gas discovery at Ntorya-1, through an early production system."


At 8:07am: [LON:AEX] Aminex PLC share price was -0.33p at 1.23p



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