LONDON (Alliance News) - Aminex PLC on Thursday said that it has agreed a deal with Bowleven PLC for the part disposal and farm-out of its Tanzanian assets, along with a deal with existing joint venture partner Solo Oil PLC.
Under the agreement, Bowleven will buy a 25% interest in the Kiliwani North Development Licence, and a 50% stake in the Ruvuma production-sharing agreement asset for a total consideration of USD28 million. Under an inter-conditional agreement with Solo Oil, the farm-out terms for the Ruvuma PSA will be shared proportionally by Aminex and Solo.
Solo will receive a total of USD3.63 million from Aminex as part of the deal.
The consideration from Bowleven will be made up of USD8.5 million in cash, USD5 million in shares, payable at completion, USD10 million net carry in relation to Aminex' retained interest in the Ruvuma PSA and USD4.5 million in contingent payments.
Following the completion of the deal Aminex will retain an operated 30.575% interest in Kiliwani, and an operated 37.5% interest in the Ruvuma PSA. Solo retains its options to buy a further 6.5% stake in Kiliwani, and it will retain a 12.5% non-operated interest in the Ruvuma PSA.
Aminex will remain as the operator of all of its assets in Tanzania, and said that once the deals are completed it will be able to reduce its outstanding corporate debt substantially.
"Today's disposal and farm out is a landmark transaction for the company, and I am delighted to welcome Bowleven as a joint venture partner. Bowleven has built an enviable position in Cameroon and has a strong technical team who share the same ideology as us, and we feel will strengthen the prospects of development," said Aminex Chief Executive Jay Bhattacherjee.
Shares in Aminex were up 7.4% at 1.96 pence, whilst shares in Bowleven were down 1.3% at 24.19p, and shares in Solo Oil were down 2.5% at 0.346p.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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