I think the big risk is for SCIR not AEX. If SCIR can't complete the deal, can't repay the loan and fund the drilling and development, then as per the terms of the JV their 25% becomes the property of ARA and AEX as per the respective % ownership of the JV.
The Tanzanian Fair Competition Commission ("FCC") has now granted its unconditional approval for the transaction and issued the Company with the Merger Clearance Certificate. The issuance of the certificate is an important step towards completion of the asset divestment.
The Company continues to engage with stakeholders across the Tanzanian government agencies whose approval is required as part of the completion process. The Board now considers it more likely that completion will be achieved in Q1 2023 rather than December 2022 as previously guided, due to likely disruption around the upcoming festive period.
https://www.londonstockexchange.com/news-article/SCIR/ruvuma-divestment-update/15745026
More M&A in the Tanz O&G space.
https://www.lse.co.uk/rns/WEN/recommended-cash-acquisition-rv0cqx08tk9abnc.html
Reality is that the current spud location and surrounding area is just a few miles from the Dangote cement plant and there is good road access as a result. I think they could clear and lay a pad in about 4 weeks.
Ruvuma Commercial Update
On 25 November 2022, at the Tanzania Petroleum Development Corporation ("TPDC") headquarters in Dar es Salaam, the parties to the Ruvuma PSA signed an addendum to the PSA ("PSA Addendum"). The Ruvuma PSA, as with all other PSAs in Tanzania, contained profit share, royalty, and taxation rates only for oil production. The PSA Addendum sets out the relevant terms for gas production.
At the event, the Tanzanian Minister of Energy and Managing Director of TPDC outlined the Government's strong commitment to:
· Develop additional gas resources as soon as possible;
· Accelerate Ruvuma's production, which will play a vital role in achieving the country's short to medium-term gas needs; and
· Construct a 30 km pipeline to tie the Ntorya gasfield into the existing Madimba processing and pumping station in the next six to nine months.
Aminex, with a 25% non-operated interest, is carried throughout the ongoing work programme to a maximum gross capital expenditure of $140 million ($35 million net to Aminex). The carry is expected to see the Company through to the commencement of commercial gas production from the Ntorya gas field, currently scheduled for early 2024, at zero cost.
Charles Santos, Executive Chairman of Aminex, commented:
"We are delighted that another essential stage in developing the Ruvuma asset has been reached. The signing ceremony was a tangible sign of the Government of Tanzania's strong commitment to the Ruvuma project, highlighting their diligent effort to increase energy production, a cornerstone of the country's economic development. The Ruvuma PSA Addendum is just the latest demonstration of the determination of all parties to work constructively and rapidly together to advance this significant project for the further development of the Tanzanian energy sector. We thank the Tanzanian authorities and the operator for their steadfast commitment to bringing the Ruvuma project to fruition."
Anyone that has witnessed the politics in Tanzania over the years understands the significance of the news today.
Carried Drill within the next 3 to 4 months and maybe that GSA is not so far away after all.
Enjoy the WE
Hi steve hope all is ok, might be worth asking them to investigate whom it is that works so hard to collapse the SP (failing badly today) Give them something useful to do at least!
22-Nov-22 12:54:24 0.2209 1,193 Sell* 0.22 0.25 2.64
22-Nov-22 12:32:28 0.2209 1,083 Sell* 0.22 0.25 2.39 O
22-Nov-22 12:08:29 0.2206 108 Sell* 0.22 0.25 0.24 O
22-Nov-22 10:59:55 0.2206 2,195 Sell* 0.22 0.25 4.84 O
22-Nov-22 10:59:55 0.2206 2,195 Sell* 0.22 0.25 4.84 O
22-Nov-22 10:26:33 0.2209 581 Sell* 0.22 0.25 1.28 O
22-Nov-22 09:51:17 0.2203 500 Sell* 0.22 0.25 1.10 O
22-Nov-22 09:46:17 0.2203 94 Sell* 0.22 0.25 0.21 O
22-Nov-22 09:39:19 0.2203 6,267 Sell* 0.22 0.25 13.81 O
22-Nov-22 09:34:18 0.223 2,500 Sell* 0.22 0.25 5.58 O
22-Nov-22 09:24:38 0.223 1,388 Sell* 0.22 0.25 3.10 O
22-Nov-22 08:49:18 0.223 1,735 Sell* 0.22 0.25 3.87 O
Hi HY, agree ref cheap but there again it all depends on activity post gas sales. If for example you are going on a multi well drilling programme, then the market momentum is maintained, if it sits doing nothing then the momentum is lost. Unfortunately share shareholders here know that just as well as WEN holders. Stagnation in upside activity just kills momentum.
So it all depends on a multi-well programme post a successful CH1, now pencilled for March. Long way to go before 1st gas sales, never mind worrying about post sales :)
Soon be Christmas.