Member Info for cperkin

Reasonable probability that the AEX/Zubair farmout will complete this week/next and the $40 million effectively handed over for 50% of the asset. Lets see if that unlocks the BOD farming down/selling solo's 25%

Nah, just the out put of an alien translation of franks post converted back by this site to ????

Can't be long till farm-out completion and that carry to production?

?? ?????? ?? ???? ??????, ??? ???????? ?? ?????.

Still waiting for resolution, the GOV held back payments for gas sold in excess of the disputed tax amount as per below from the AEX annual report.

"The Company continues to meet with the relevant Tanzanian authorities to discuss and resolve the issue of outstanding receivables from previous gas sales from KNDL."

Owed to Gov (disputed)
"the TPDC has requested payment of certain amounts totalling US$6.0 million for liabilities arising on revenues from gas sales, of which Aminex’s share is estimated to be US$2.7 million."

Gov owe JV for gas sales;

"TPDC trade receivables balance of US$7.8 million, of which Aminex’s net share amounted to US$3.2 million, due from the TPDC for invoiced gas sales and interest for late payment thereon"

No worries Paul. AEX only manged base cost recovery in their deal but the upside is the carry to production and a good proportion or even all of full 8 well field development. If solo sell 25% then they have no upside so need to account for that in the price and after all, C1 drill is likely to add significant CPR'd value to the licence area.

I estimate around £14 to £15 million spent on exploration and appraisal, not including placing fees. £20 million if you include all gross costs to date.

Any deal below £20 million for a full sale is a loss.

100% agree, a decent bit of discussion about the assets & the afternoon in the garden was superb.

According to the TPDC, domestic gas usage is set to rise to 0.5 BCF per day and the Gas export pipeline is forecast to swallow a massive 1BCF per day within the next 3 years. (probably take longer of course) They are going to need more than the 8 wells from the Ntorya development or some amazing flow rates to get anywhere close.

Ah thanks Crusty, I found what seemed to be conflicting statements in the ARA and agree it is as you say, CGT for the farmout and the same amount again for 2013 to 15.

"The capital gains tax (“CGT”) payable on the Farm-Out amounts to US$2.2 million"

"As disclosed in Note 24, the Group received a tax assessment from the TRA of US$2.2 million in relation to a prior period audit related to 2013 to 2015"

I must have missed that Crusty, 2014 to 2016, that could only be Killi could it not? Shame Tanzania are not so creative when it comes to acceleration & development of their "Nationally important assets"

Morning Crusty, I think we have done this one before. Well clearly the Tanzanian Government consider the $35 + $5 deal that Aminex have just completed as a Cash Equivalent and hence the CGT tax AEX have had to pay....rightly or wrongly.

The farmout completion adds additional value imo as the project is already 75% financed to production. Anyway over to the BOD and maybe the Zubairs?

International flights open to Tanzania + No quarantine required so they can get on with ordering and delivering what they need for 3D + Drill as soon as the farmout completes.

https://twitter.com/mtanzania/status/1262795849844903947
https://twitter.com/mtanzania/status/1262991302406348801

If the CEO of Helium-1 is to be believed they will be drilling in the 3rd/4th quarter trrime. International flights are now back open in Tanzania and with no Quarantine on arrival.

https://twitter.com/mtanzania/status/1262795849844903947
https://twitter.com/mtanzania/status/1262991302406348801

Morning steve, hope all is well. I certainly hope they are working on something steve, the radio silence is deafening post One Dyas. Lets see what happens once the AEX Zubair farmout is completed and lets hope the BOD have taken note of the CGT liability that AEX have just paid on their $40 million.

The base value is already set @ $20 million, don't see anyone voting for less.

Hi AA, fully agree. The lack of communication around the strategy and the delivery of that strategy has been appalling post the One Dyas - no deal. Lets hope it's because of something significant about to be delivered, either on the producing asset gaining front or the partial/full disposal of Ruvuma front.

20,000 boepd…...long way to go from 0!

Crusty the Hyper-bear, it's got a ring to it ;)

On Farmout completion, 75% of the Project is fully funded trough to production and the Full field development of around 8 producing wells. SOLO's 25% becomes more valuable as a result. I also wonder why the Zubairs would not step in to take them over 50% of the project?

Looks like the deal should be done and dusted very soon and the Zubairs "Officially" take over the driving seat.

Onwards!

Ruvuma Farm-Out Update
Further to recent updates on progress towards completion of the Ruvuma Farm-Out, the Company is pleased to announce that following payment by the Company's subsidiary of the capital gains tax bill, and payment by ARA Petroleum Tanzania Limited ("APT") of the stamp duty bill, the Tanzania Revenue Authority ("TRA") has issued the Tax Clearance Certificate to the Company.
The Tax Clearance Certificate has now been submitted to the Tanzania Petroleum Development Corporation ("TPDC") to be forwarded to the Ministry of Energy. The Company has now completed all the requirements to allow the Minister to grant approval of the assignment of the 50% interest in the Ruvuma PSA to APT, the final remaining condition to completion of the Farm-Out.
Robert Ambrose, Chief Executive of Aminex commented:
"This is a major milestone. With the receipt of the Tax Clearance Certificate from the TRA and with the onward submission to the TPDC, Aminex has now accomplished all of the conditions within our control in order to complete the Ruvuma Farm-Out."

https://www.lse.co.uk/rns/AEX/ruvuma-farm-out-update-6jg4qpddhxz4tx6.html