LONDON (Alliance News) - Aminex PLC and Solo Oil PLC announced Monday that a formal addition to the Ruvuma Production Sharing Contract has been signed with the Tanzanian Minister of Energy and Mines.
The oil and gas exploration and development companies said that the addendum allows for the remaining obligations under the first extension period tp be completed during the second extension period, as previously announced by the company in May 2013.
The companies also said the changed agreement requires four wells to be drilled by the end of 2016.
Aminex said that in conjunction with the deal, it has granted the Tanzanian Petroleum Development Corporation and the Tanzanian Government certain securities over its Kilwani North Development licence on a sliding scale basis in which as each of the wells is drilled the security reduces and when all four wells are drilled, the TPDC and government will have no security over the Kilwani North licence.
Solo Oil said an update on the progress of a seismic study at the site will be issued when available.
Solo Oil also said in a separate statement that it has raised GBP1.6 million before expenses through the issue of up to 38.3 million open offer shares at 4.2 pence per share.
Participants in the Ruvuma PSA are currently; Ndovu Resources Ltd, an Aminex subsidiary with a 75% operating ownership and Solo Oil with 25%.
Solo Oil shares were down 1.7% to 0.226 pence while Aminex shares were up 0.5% to 1.00 pence Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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