Aminex PLC PART DISPOSAL AND FARM OUT OF TANZANIAN ASSETS (2197G)
November 19 2015 - 2:00AM
UK Regulatory
TIDMAEX
RNS Number : 2197G
Aminex PLC
19 November 2015
Aminex plc
("Aminex" or "the Company")
PART DISPOSAL AND FARM OUT OF TANZANIAN ASSETS
Landmark transaction strengthens balance sheet, accelerates work
programme and meets stated corporate strategy
Aminex is pleased to announce that it has reached an agreement
with Bowleven plc ("Bowleven"), the AIM listed oil and gas company,
for part disposal and farm out of its Tanzanian assets (the
"Bowleven Agreement"). Terms of the Bowleven Agreement include the
disposal by Aminex of a 25% interest in the Kiliwani North
Development Licence ("KNDL") and farming into the Ruvuma PSA,
including the Ntorya appraisal programme, for a 50% gross interest.
Under an inter-conditional agreement with its existing joint
venture partner Solo Oil plc ("Solo"), the farm out terms for the
Ruvuma PSA will be shared proportionately by Aminex and Solo (the
"Solo Agreement").
KEY TRANSACTIONAL POINTS - GROSS OFFER TERMS:
-- Cash consideration of $8.5 million
-- Shares in Bowleven to the value of $5 million with a 9 month lock-up period
-- Net carry of $10 million on all Ruvuma PSA activity, enabling a multi well programme
-- A cash bonus of $0.5 million on the completion of drilling of the Ntorya-2 well
-- A bonus of $4 million, to be settled in cash or shares at
Bowleven's option, payable on achieving commercial production from
the Ruvuma PSA for a minimum of 30 days
KEY POINTS FOR AMINEX:
-- Balance sheet strengthened with outstanding debt substantially reduced
-- Operations in Ruvuma PSA accelerated
-- Aminex will remain the operator of all its assets in Tanzania
Under the Solo Agreement, Solo will receive a 25% share of the
net carry of $10 million and will be entitled to 25% of the
contingent bonuses. The net effective value to Aminex of the
transaction will be $24.375 million.
The combined transaction is conditional upon, amongst other
things, the execution of formal agreements with Bowleven and Solo,
and Aminex shareholder approval. The Bowleven Agreement will have
an effective date of 1 January 2016. Both the sale of an interest
in the KNDL and the farm-out transaction for interests in the
Ruvuma PSA are subject to approval from the Tanzanian authorities
and, where applicable, to partner pre-emption rights which must be
exercised within 30 days, in absence of which they will lapse.
The completion of the proposed transactions with Bowleven and
Solo will enable Aminex to reduce its outstanding corporate debt
substantially, delivering on its 2015 stated objective. Aminex will
remain the operator of all its assets in Tanzania following close
of the transaction and is in discussions with Solo and Bowleven to
accelerate the work programme at Ruvuma. The Company will announce
an updated work programme once concluded. In addition, the holding
in Bowleven shares will give Aminex shareholders an exposure to
Bowleven's drilling and development programme for 2016 in
Cameroon.
Following the completion of the combined transactions and with
cash expected to be generated from KNDL soon, the Board considers
the Company to be well placed to identify other production and
development opportunities in line with the Company's longer-term
strategy.
On completion of the transactions, Aminex will retain an
operated 30.575% interest in KNDL and an operated 37.5% interest in
the Ruvuma PSA. Shareholders are reminded that Solo retains its
option to purchase a further 6.5% stake in KNDL (before TPDC
back-in) on the terms previously advised to shareholders.
Aminex Chief Executive Jay Bhattacherjee commented:
"Today's disposal and farm out is a landmark transaction for the
Company and I am delighted to welcome Bowleven as a joint venture
partner. Bowleven has built an enviable position in Cameroon and
has a strong technical team who share the same ideology as us and
we feel will strengthen the prospects of development."
- Ends -
For further information:
Aminex PLC +44 20 7291 3100
Jay Bhattacherjee, Chief
Executive Officer
Max Williams, Chief Financial
Officer
www.aminex-plc.com
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
Aidan Stanley
This information is provided by RNS
The company news service from the London Stock Exchange
END
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