Asset Details The HOT relates to the KNDL and the Ruvuma PSA in Tanzania where Aminex currently operates both licences. Kiliwani North Development Licence (KNDL), Tanzania The KNDL, offers the potential for near-term production with proximate infrastructure for a gas-to-power development. The KNDL contains the Kiliwani North gas field which Aminex, operator, expects to produce initially at up to approximately 30 million standard cubic feet of gas per day. The Kiliwani North-1 (KN-1) well has now been tied into the main pipeline infrastructure and is awaiting completion of the adjacent Songo Songo gas processing plant, which is expected to be completed shortly. Independently assessed unrisked mean gross gas-in-place and P50 gross contingent resources at Kiliwani North are estimated to be 44 bcf and 28 bcf respectively. The resources are classified as contingent pending signature of the Gas Sales Agreement (GSA). The GSA terms have been largely completed and Aminex are waiting for final payment protection terms to enable signature of the GSA. Aminex, operator, holds a 55.575% interest (pre-transaction), RAK Gas 23.75%, Solo Oil 6.175% and Bounty Oil & Gas 9.5%, TPDC 5% Ruvuma PSA, Tanzania The Ruvuma PSA, onshore Tanzania, offers the potential for near-term production post appraisal and exploration drilling planned in 2016, alongside significant upside potential identified on block. 3 Independently assessed unrisked mean gross gas-in-place and P50 gross contingent resources for the Ntorya discovery are estimated to be 153 bcf and 70 bcf respectively. Independently assessed unrisked prospective mean gross gas-in-place volumes for the Ruvuma PSA are 4.2 trillion cubic feet (tcf). Aminex, operator, holds a 75% interest (pretransaction) and Solo Oil 25%.
Proposed Acquisition of Licence Interests in Tanzania - Heads of Terms Signed Kiliwani North Development Licence and Ruvuma PSA, Tanzania Bowleven, the Africa focused oil and gas exploration group traded on AIM, is pleased to announce that it has signed a conditional Heads of Terms (HOT) with Aminex PLC (Aminex) for the acquisition of a 25% interest in the Kiliwani North Development Licence (KNDL) and a 50% interest in the Ruvuma PSA, in Tanzania. The proposed transaction is in line with the Group’s strategy of focusing on opportunities in Africa which have the potential to create material shareholder value, whilst maintaining a robust balance sheet and strong capital discipline. Consistent with this, this opportunity offers high quality near-term production and cashflow, alongside significant exploration/appraisal upside, located near existing infrastructure, enabling low cost rapid development and monetisation of discovered resources. Highlights of the Transaction  Bowleven to acquire: o 25% interest in the soon to be producing Kiliwani North Development Licence (KNDL); and o 50% interest in the proven and highly prospective Ruvuma PSA.  The deal provides: o A low cost entry into a rapidly expanding Tanzanian gas market with substantial existing infrastructure with spare capacity; o Near-term high quality production providing cashflow from the essentially complete Kiliwani North development; o Access to extensive exploration and appraisal potential on the Ruvuma PSA, with the opportunities for near-term gas-to-power into the local market and longer term gas sales into adjoining major existing trans-Tanzanian pipeline to Dar Es Salaam; and o Appraisal drilling on Ruvuma PSA early 2016.  Aggregate gross consideration of up to $28 million comprising $8.5 million cash, $10 million carry, $5 million share-based element and $4.5 million in contingent payments. 2 As at 31 October 2015, the Group had a cash balance of circa $120 million and no debt with a further $40 million receivable in staged cash proceeds ($15 million on completion of drilling/end September 2016 and $25 million on Etinde FID). Kevin Hart, Chief Executive of Bowleven plc, said: “The decision to enter into this Heads of Terms with Aminex follows the extensive screening of a large number of opportunities in Africa. Consistent with the Group’s strategy, the deal affords Bowleven the opportunity to participate in highly attractive production and material appraisal/exploration assets without compromising its robust balance sheet and strong capital discipline. In particular, the onshore Ruvuma acreage mirrors the near-term in-situ gas-to-power development possibilities being progressed at Bomono, whilst the extensive, material prospective resources open up the opportunity for substantial future gas sales via the existing proximal processing infrastructure and pipeline. During the forthcoming
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