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TIDMAEX
RNS Number : 9583D
Aminex PLC
25 February 2020
25 February 2020
Aminex plc
("Aminex" or "the Company")
Corporate and Operations Update
Aminex announces the following update regarding the Company's ongoing operations in Tanzania and other corporate matters.
Highlights:
-- APT and Aminex have agreed that upon completion of the Farm-Out and the transfer of operatorship to APT, they will seek permission from the Joint Venture and the Tanzanian authorities to move the contingent elements of the 2020 work programme into the firm budget
-- Positive indications in-country that, after a period of reduced corporate engagement, the Government is re-engaging with the international business community to support the country's power demands
-- Awaiting formal update relating to (i) the review of production sharing agreements ("PSAs"), (ii) formal extensions for the Mtwara and Nyuni Area licences and (iii) the approval of the Kiliwani-North-1 remediation programme; in-country media reports suggest that the PSA review process is near completion
-- Ntorya project progressed such that following approval of the tendering and procurement process, the Company can progress operations supporting the ordering of the Long Lead Items shortly thereafter
-- ARA Petroleum Tanzania ("APT") has secured offices and staff accommodation
Tom Mackay, Chief Executive Officer of Aminex commented:
"While we continue to engage in constructive dialogue, Aminex and APT are working diligently to progress workflows such that when the approvals are given, we can quickly move into an operational phase and deliver first gas from Ntorya and begin remediation work on Kiliwani. As of yet, no formal update has been received from the Government of Tanzania in regards to our licences, however we have had positive indications in-country that the Government is approaching a place where it can update the international oil companies.
We thank shareholders for their continued confidence in the project and patience during this time of internal government reform. We look forward to updating the market as and when progress is made."
Ntorya Project Update
The Company has prepared and is in the process of receiving approval from the appropriate authorities to proceed for securing the services required to drill the Chikumbi-1 well. The Company is confident that it will pass another significant milestone in progressing the Chikumbi-1 exploration well.
APT is preparing to become functional in country having taken on offices and staff accommodation in Dar-es-Salaam. The Company, with APT, has met with various local contractors as part of the pre-project assessment of locally available services. Services not available in Tanzania will need to be sourced from the broader East African region.
APT and Aminex have agreed, subject to the requirements of the Ruvuma PSA and Joint Operating Agreement ("JOA"), that upon completion of the Farm-Out
The aminex gravy train chugs on.....
All ties in with all the info in the Media the last couple of weeks other than the fact they claim not to have seen the PSA terms yet? Maybe the Zubairs have though?
"the approval of the Kiliwani-North-1 remediation programme"... at last a formal admission!
Oh and there was me thinking that we had all the "approvals" that were necessary to complete the KN1 remediation programme.
Bring back the FAQ's !!
all sounds very bullish to me : )
"With a US$40 million Work Programme planned, including the first ever 3D seismic survey onshore Tanzania, Aminex intends to rapidly meet this demand. Ntorya alone contains an estimated mean 1.87 trillion cubic feet of gas in place, as independently audited by RPS Energy, and has easy access to existing infrastructure. This new gas can deliver a step-change to local Tanzanian businesses and communities by reducing blackouts and replacing traditional cooking fuels with natural gas, and in doing so lower the carbon intensity of Tanzania.
Furthermore, Aminex with 18 years of in-country experience, also intends to further explore and develop its other assets at Kiliwani and in the Nyuni Area, with the intent to add and provide further gas resources to the country. "
right so lets crack on with the 3D and 2D as well then in 2020, with-out having to wait for the production license. interesting ?
"APT and Aminex have agreed, subject to the requirements of the Ruvuma PSA and Joint Operating Agreement ("JOA"), that upon completion of the Farm-Out and the transfer of operatorship to APT, to request approval from the Joint Venture and the Tanzanian authorities to move the contingent elements of the previously approved 2020 Work Programme and Budget into the firm budget for the year. The intention would be for the seismic acquisition to form part of the immediate work programme and no longer be contingent upon the award of a Ntorya Development Licence. Under the terms of the JOA, approval from two parties holding at least a 65% participating interest in the licence will be required to move those elements into the firm budget. After completion of the Farm-Out, APT will hold 50% and Aminex will hold 25%. Assuming that approvals under the JOA and PSA are granted, the firm budget will then include the drilling of the Chikumbi-1 well and the acquisition of an extensive 3D and 2D seismic survey. The total value of the contingent elements proposed to be reclassified to firm is currently budgeted at approximately US$40million (gross), for which Aminex would be fully carried. The proposed 3D seismic survey, expected to cover approximately 500 km², would be the first onshore 3D seismic programme undertaken in Tanzania."
would be helpful
Kiliwani Gas Receivables
"Aminex is in discussion with the Tanzanian government authorities to secure payment of the outstanding receivables owed for gas sales from the Kiliwani North gas field that amount to approximately US$6.7 million (gross) excluding interest. This is finally being progressed after the return of senior government officials who have recognised their obligations and are making efforts to resolve the matter. A meeting has been scheduled and we hope to be in a position to update shareholders soon. "
So the update is there is no update
Cperkin do you really seriously think after that rns APT have seen the PSA?
Lol talk about a "dwerky" remark??!!
I agree blackgold – the intention to remove the dependency for the 3D seismics on the 25 year development license is important. You will recall that in my recent posts, I have said that I think the timing of that is key to ensure the partners can press on with the full field development quickly after the CH1 drill.
If everything that is 'due soon', 'imminent', 'awaiting approval' and 'is just around the corner' happens in the same week our PR company will go into meltdown... !
Crusty FGS man please NOT the list!!
Good to see vindication of the many hours of your time wasted "back then" lol.
Peking, I believe we will get a tsunami of positive news and updates once the govt to press the button.. I’m pleased with the update. Good that all parties remain positive. A bit longer to wait, but the important phrase is “when” not if .. ! GLA
Just trying to tie it back to what has been reported in the Tanzanian press dunder, although it was unclear if it was by the end of this month or last.
yes maybe Ufufuo, bot i'm wondering if Aminex has been in comunaca with Solo?
"The intention would be for the seismic acquisition to form part of the immediate work programme and no longer be contingent upon the award of a Ntorya Development Licence. Under the terms of the JOA, approval from two parties holding at least a 65% participating interest in the licence will be required to move those elements into the firm budget."
I'd go by what was in the RNs which gas obviously been written in full co-operation with APT and u think they "may" have mentioned it lol!! As I say a very very dwerky remark but no problem.
I am surprised at the "strength" of the message in what was released.
As ever all imho and dyor.
Apologies last message from me directed to CP!!
Tend to agree Sambo, particularly pleased to see the oustanding royalty issue is still in play and the language around this seems more positive than i can recall. Although as this goes back so far that's not saying much..! GLA
Well blackgold, that was one of the other very interesting points. To me, the message was clear. After the farmout, Aminex and APT will hold a 75% interest and under the terms of the JOA, they will be able to push ahead with plans...they don't need approval from Solo. My interpretation of that is that Solo are not ready to move at the speed that Aminex and APT want to and they are not planning to wait for them. Solo will need to make sure they have their $10.36m ready to go, otherwise they risk defaulting on the agreement. By the way, that is not a situation that I am wishing on Solo or their shareholders. Just how I interpret it
They should have the PSA terms by the end of the month according to this article earlier this month.
"The PSA report was completed early Jan and companies should receive the text by the end of the month!
https://www.ippmedia.com/en/features/tanzania’s-natural-gas-sector-%C2%A0elusive-economic-game-changer
For crying out loud CP where is this detail validated by senior govt rns?
Indeed dunder, indeed. And yet I was the evil purveyor of lies and misinformation... how how different things look when viewed through the rear view mirror eh?
It could be Buffett loading up.
Crusty. You had the patience of an angel buddy.
Imho, very interesting rns today especially in how it has been written.