Increase of Interest in Nyuni PSA, Tanzania (6768A)
February 04 2011 - 2:00AM
UK Regulatory
TIDMAEX
RNS Number : 6768A
Aminex PLC
04 February 2011
AMINEX PLC
INCREASE OF INTEREST IN NYUNI PSA, TANZANIA
Aminex PLC ('Aminex' or the 'Company') announces that it is
proposing to increase its interest in the Nyuni Production Sharing
Agreement in Tanzania ('Nyuni PSA') from 50% to 65% through a
farm-in arrangement. Binding heads of agreement have been
signed.
Under the terms of the farm-in, Aminex will fund a 20% share in
the dry hole cost of the forthcoming Nyuni-2 exploration well in
Tanzania in return for assignment to the Company of a 15% interest.
The farm-out party is Key Petroleum Ltd. ('Key') which is
refocusing its activities to onshore United Kingdom production and
onshore North Perth Basin exploration in Australia. Once the
farm-out conditions have been met, Key will become a 5% partner and
responsible for 5% of ongoing costs, including any testing and
completion costs of the Nyuni-2 well. The additional 15% being
acquired by Aminex includes 15% of the tested Kiliwani North gas
discovery and of the logged but not tested gas discovery in
Albian-Aptian sands in the Nyuni-1 well, drilled in 2004.
Nyuni-2 is due to be spudded in April and a rig contract is in
the final stages of negotiations. Nyuni-2 will be drilled from
Nyuni Island at an angle of approximately 30 degrees from vertical
to target a large gas prospect in Neocomian age (Lower Cretaceous)
sandstones. A commercial discovery could be tied back via a 20
kilometre subsea pipeline to Songo-Songo and would be relatively
quicker and less expensive to develop than, for instance, a
discovery in deep water.
Aminex chairman Brian Hall commented: 'A further acquisition of
interest in the Nyuni PSA is a logical expansion of our activities
and confirms our strong commitment not only to the Nyuni PSA itself
but to Tanzania and the East African margin generally, now a focus
of high oil industry interest. We are pleased to have been able to
come to a mutually satisfactory arrangement with Key, which meets
the strategic objectives of both companies'.
Partners in the Nyuni PSA after the farm-out terms have been
fulfilled will be:
Ndovu Resources (Aminex subsidiary) 65% (operator)
RAK Gas Commission 25%
Key Petroleum Ltd 5%
Bounty Oil 5%
The agreement is subject to formal consent of the Government of
Tanzania.
For further information:
Aminex
Brian Hall - Chairman Tel: +44 (0) 20 7291 3100
Pelham Bell Pottinger
Archie Berens Tel: +44 (0) 20 7861 3112 / +44 (0)7802
442486
This information is provided by RNS
The company news service from the London Stock Exchange
END
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