Posted on :Tuesday , 27th October 2020

Upstream oil and gas company Aminex, has declared completion of the Ruvuma farm-out through its entire subsidiary, Ndovu Resources, transferring 50% interest in, and operatorship of the Ruvuma PSA to ARA Petroleum Tanzania Limited.

Over the past 12 months, the company has borrowed $3 million from ARA Petroleum which has now been compensated to ARA by means of US$5 million cash consideration payable to the company on completion of the farm-out.

The sum of interest that had accrued on the Advance and the Loan has also been repaid from the interim period costs that are due to the company under the farm-out agreement.

Following completion, the company now holds a 25% interest in the Ruvuma PSA with a full carry to potentially significant volumes of production.

The farm-out includes a full carry for a minimum work programme including the drilling and testing of the Chikumbi-1 well, the acquisition of 3D seismic over a minimum of 200 km2 within the Ntorya area and further production wells and infrastructure as required to propel the project to its estimated P50 production level of approximately 140 MMcf/d (gross project levels), as shown in an io Ntorya commercialisation study.

The full carry for Aminex’s share of costs up to US$35 million in respect of its 25% interest involves a potential expenditure during the carry period of up to $105 million for the aggregate 75% working interest used by Aminex and APT.

APT, as the new operator of the Ruvuma PSA, intends to call an Operating Committee Meeting where they will formally present their programme and schedule for the drilling of the Chikumbi-1 well and the 3D seismic acquisition programme.

Robert Ambrose, Chief Executive of Aminex commented: “We are pleased to finally complete the farm-out and hand over operatorship of the Ruvuma PSA to APT. Aminex and Ndovu stand ready to provide all moderate assistance to APT to support them in this regard and beyond. We are also highly grateful to ARA Petroleum for its support over the past 12 months and look forward to the work programme progressing.”