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Ruvuma farm-out deadline extended

Aminex still waiting on approval from Tanzanian government to completed deal with ARA Petroleum

London-listed Aminex has been given more time to wrap up the farm-out of its Ruvuma production sharing agreement in Tanzania to Zubair subsidiary ARA Petroleum.

Aminex revealed the longstop date for the completion of the farm-out had been extended to 31 October as it continues to wait on government approval to gain an extension of the Mtwara Licence and transfer of the interest and operatorship of the PSA to ARA.

“We are awaiting Tanzanian government approval to move forward with the Ruvuma farm-out to ARA Petroleum of Oman, which upon completion will deliver a $5 million cash inflow and a $35 million carry through the further appraisal and development of the Ntorya gas-field,” Aminex chairman John Bell said on Friday.

Aminex agreed last year to farm-out a 50% share in the Ruvuma PSA to ARA, with the former to maintain a 25% interest in the licence.

Under the deal, ARA will become operator of the PSA and move to drill, complete, and test Chikumbi-1 (formally Ntorya-3) “as soon as reasonably practicable”, as well as acquire, process and interpret 3D seismic over a minimum of 200 square kilometres within the Ntorya area.

The Ntorya discovery within the PSA area is estimated to hold 1.87 trillion cubic feet of gas initially in place.

Meanwhile, Aminex and AIM-listed Solo Oil have completed reprocessing 2D seismic shot over the Kiliwani North development licence in south-eastern Tanzania ahead of remapping and a proposed 3D seismic survey.

The duo are preparing to re-enter Kiliwani North-1 amid continuing remedial work “to investigate fluid levels in the well and provide accurate bottom hole pressure measurements” to improve reservoir data for future operations, Aminex said.

“There is good upside potential to be realised from this asset (and we) look forward to seeing production from Kiliwani North-1 back on line in due course,” said Solo executive chair Alastair Ferguson.

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