Aminex PLC KNDL - Partial Disposal Update (9585Z)
December 17 2014 - 2:00AM
UK Regulatory
TIDMAEX TIDMSOLO
RNS Number : 9585Z
Aminex PLC
17 December 2014
Aminex plc
("Aminex" or "the Company")
Kiliwani North Development Licence - Partial Disposal Update
Further to Aminex's announcement on 12 November 2014 in which it
stated that its subsidiary Ndovu Resources Ltd. had signed binding,
conditional heads of terms with Solo Oil PLC ('Solo') for the sale
to Solo of up to 13% of in the Kiliwani North Development Licence
('KNDL') in Tanzania for a total consideration of $7 million, the
Company is now pleased to advise shareholders that it has received
confirmation from the Tanzanian Ministry of Energy and Minerals
that the Minister has no objection to the proposed transfer of
assignment for the sale which now remains subject only to a formal
Deed of Assignment being completed and signed by all participating
parties. The parties to the transaction will observe all customary
Tanzanian tax clearance procedures.
Aminex and Solo will now proceed with the assignment of the
initial 6.5% interest in KNDL for $3.5 million. The parties have
agreed to extend the deadline on the option to purchase an
additional 6.5% on the same terms to 30(th) January 2015 as a
result of the longer than expected time taken to obtain the no
objection notification.
The KNDL contains the Kiliwani North field which is expected to
start production at approximately 20 mmcfd in early 2015. Once the
Deed of Assignment is complete, and if Solo elects to take up its
full 13% entitlement, the KNDL joint venture partners will be Ndovu
Resources Ltd. (Aminex) 52% (operator), RAK Gas 25%, Bounty Oil 10%
and Solo 13%.
Once producing, KNDL will represent a major milestone for Aminex
by providing first revenues to the Company from its Tanzanian
assets. Independently verified resources at KNDL are estimated to
be 45 billion cubic feet of gas in place. Construction of a 2 km
pipeline from the KN1 wellhead to the new Songo Songo processing
plant is expected to be completed by the end of this month.
The Company is also pleased to report that a Gas Sales Agreement
for KNDL is expected to be completed prior to the commissioning of
the 2 km pipeline and the Songo Songo processing plant in early
2015.
Aminex and Solo are already partners in the Ruvuma Production
Sharing Agreement in Tanzania, with respectively 75% and 25%
interests, where gas was discovered in 2012 at Ntorya-1. Ndovu is
the operator of both the Ruvuma Production Sharing Agreement and
the KNDL.
Aminex CEO, Jay Bhattacherjee, commented: "We are pleased to
announce this process to sell part of the KNDL to Solo is now
approaching conclusion with only the formal Deed of Assignment left
to be executed. As previously stated, Aminex intends to use the
sale proceeds to reduce outstanding corporate debt thereby
strengthen its balance sheet."
For further information:
Aminex PLC +44 20 7291 3100
Jay Bhattacherjee, Chief
Executive Officer
Max Williams, Chief
Financial Officer
Corporate Brokers
Shore Capital Stockbrokers-Jerry
Keen +44 20 7408 4090
Davy Corporate Finance-Brian
Garrahy +35 3 1679 7788
GMP Securities Europe
LLP-Rob Collins +44 20 7647 2816
Yellow Jersey PR (Financial
PR) +44 7768 537 739
Dominic Barretto
Kelsey Traynor
This information is provided by RNS
The company news service from the London Stock Exchange
END
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