Once commissioned, Aminex should benefit from its first Tanzanian revenues, and negotiation of a gas sales agreement with TPDC for delivery of 20 MMscf/d (gross) is in progress, the release said.
20MMcfd = 20,000Mcfd
20,000Mcfd x US$3.55/Mcf = $71,000/day x 365 = $25,915,000 per annum gas sales
AEX can claw back 75% of the "gross revenues less processing and pipeline tariffs and direct sales taxes in any year" to pay back the costs of Kiliwani exploration, seismic and drilling. That will be a nice big cut of the sales value until the cash is recouped. After that it should get a similar deal to Orca, which ends up with 25% of the sales value (still far more than numpties were guesstimating on here earlier).
Also from the Orca results:
"On 8 November, His Excellency Jakaya Kikwete, President of the United Republic of Tanzania, formally commissioned the start of construction of the Mnazi Bay to Dar es Salaam Gas Pipeline Project, which will tie into expanded Songo Songo facilities onshore at Somanga Funga. The Government has stated that the 532km pipeline and its associated facilities are expected to be completed and commissioned in 18 months."
8 November plus 18 months is 8 May 2014, not the end of 2014 as AEX are 'conservatively' targeting.
if wording of RNS was bit different, would it have still caused that much fall? e.g. something like below or are they preparing us for worse?
An extensive farm-out process has been in progress since 2012 and a call for bids was made with a closing date in March 2013. More than 30 companies signed confidentiality agreements and reviewed data. Company is working with those that have shown a continuing interest. Any signed agreement will be promptly reported to shareholders. Due to delays and extensions to the initial exploration period of the Ruvuma PSA (incurred at a time when Aminex was not the operator), it would not now be feasible to complete the work programme commitments for the first extension period by the due date of December 2013 even had a farm-out already been achieved. The Company has therefore negotiated revised PSA terms with TPDC whereby the two wells which should have been drilled in the current period will be transferred to the final period which expires end 2016. This has been agreed in principle and formal approval is currently awaited. Once a farm-out has been concluded, a planned onshore 2D seismic programme will be initiated. An application for a carve-out of an appraisal licence around the 2012 Ntorya-1 gas discovery, together with all relevant documentation, has been lodged with the Tanzanian authorities and consent is awaited. Aminex has a 75% interest in this PSA and is the operator.
It is some time since Aminex announced its intention of divesting itself of its US exploration, development and producing operations. This remains the Company's firm intention and there are currently three interested parties, one of which has recently been granted an exclusive option to complete due diligence and make a bid. Shareholders will be kept informed as soon as any substantive progress has been made. Remedial work on the Sunny Ernst-2 well at Alta Loma increased production but not to the levels anticipated at the time the work was carried out. Downhole work to increase production is also required at the El Paso-operated OM10-1 well at Shoats Creek but has not yet been carried out due to operator logistical issues.
I am Really Really Sorry Guys and Dolls for what has happened. I really feel for you All. I was in Aminex big style. Thankfully a voice told me to get out. I had every faith in Aminex when Stuart Detmer was at the helm. When he jumped ship that was it. I am now into Magnolia. Maggie has dropped a bit to what Aminex is now. The future for Magnolia is far better than a future with Aminex. Cut your loses and join the good ship Magnolia. Good Luck and regards to ALL.
This share is a joke, the imbeciles running the place are clowns. Ive been part of this since the drill bit became stuck and the share nose dived..now down again! Now we can't even negotiate what we were told was a top licence! We are doomed... Why would Brian Hall want to summarise the difficulties he's faced in negotiations when the deal still remains to be done? Surely the parties at the table must now know we are desperate which isn't even the word!! The writing was on the wall when SD left and most of us failed to see it.
because these guys running the business are muppets. Most are retired or close to retirement Because AEX are living off a loan charging 12% rising to 15% in July- Because they have been trying to sell USA assets for a couple of years now- because USA assets are not producing as much anymore- Because USA asset sale will cover their loan .. if they are not screwed by the buyer who can see their financial pain - because they cannot find farmin partners by their own admission - because the city reckons any famin partner with any calibre, will wait till they have runout of dosn and then pick them up on the cheap.. I could go into more detail but I wont.Go on CH put your spin on the situation
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