(Alliance News) - Aminex PLC said Friday it continue to wait for approval from the Tanzanian government for a long-stop-date extension for the Ruvuma project farm-out to ARA Petroleum Tanzania Ltd.
At the end of July, Aminex had reported that all parties in the Tanzanian gas project agreed to extended the deadline for the farm-out to the end of October, but now are awaiting approval from government authorities.
Aminex said that there is a review being carried out of all production-sharing agreements throughout the East African country, which is causing the delay.
The farm-out deal would see 50% of the interest in the Ruvuma gas project held by Aminex transferred to ARA Petroleum through Zubair Corp LLC.
In addition, Aminex said it has completed the reprocessing of select 2D seismic lines over the Kiliwani North development licence, also in Tanzania.
Data from the reprocessing is expected to help with the design of a 3D seismic survey, and remapping of the licence will start once final data has been received.
Aminex in the meantime has continued to source equipment to perform the reentry and remedial work on Kiliwani North-1.
Natural resources-focused investment firm Solo Oil PLC, noted the announcement by Aminex, and said it was "wholly confident" in Animex's proposed work programme.
Solo holds a 25% beneficial interest in Ruvuma and a 8.4% interest in the Kiliwani North-1 well, both in Tanzania.
"We have cut costs to appropriate levels, and we are awaiting Tanzanian government approval to move forward with the Ruvuma farm-out to ARA Petroleum of Oman, which upon completion will deliver a USD5 million cash inflow and a USD35 million carry through the further appraisal and development of the Ntorya gas-field. In the meantime, progress is being made at Kiliwani," said Aminex Chair John Bell.
Commented Solo Oil Chair Alastair Ferguson: "Solo's growth strategy is predicated on establishing sustainable cash flow and we therefore look forward to seeing production from Kiliwani North-1 back on line in due course. We also remain committed to realising the value of our interest in Ruvuma, but the current situation continues to reaffirm that the board have taken the right strategic decision to diversify the business in terms of geography and asset type, and take greater control over our future"
Shares in Aminex were down 6.9% at 0.68 pence in London on Friday, while Solo Oil shares were 11% lower at 1.28p on Friday.
Aminex (AEX)