RE: SCIR comment6 Apr 2023 15:09
ICB,
SCIR have advised investors that the deal cannot be legally stopped. The Tanzania Government aren't going to stop it as they want to keep ARA happy. ARA are doing loads for the Tanzania economy and communities, so the deal should breeze through approval.
What are SCIR are referring to with " The firm consideration, as well as the contingent consideration elements associated with the accelerated first gas of that project" some may ask, the answer is in their previous RNS.
Ruvuma Transaction Highlights
· Total consideration of up to US$16 million comprised of:
o Initial consideration of US$3 million payable on completion of the Proposed Transaction;
o US$3 million payable upon final investment decision being taken by the parties to the Ruvuma Asset Production Sharing Agreement or the JOA as the case may be;
o Deferred consideration of up to US$8 million payable in the form of a 25% net revenue share from the point when Ruvuma commences delivery of gas to the gas buyer;
o Contingent consideration of US$2 million payable on gross production reaching a level equal to or greater than 50Bcf.
What that means is SCIR get revenue from Gas sales after ARA take their share of the license. So as far as they are concerned the deal is going ahead.
This all means that ARA and AEX have no reason to hold back news. They could of course, that's their prerogative, but they really have no valid reason to do so.
Next news could be next week or the week after, as the tests on NT-2 were scheduled for end of March and expected to take 2 weeks. That RNS would give them an opportunity to give us a 3D Seismic, CH-1a location, general update.
"A two-week well-testing programme on the Ntorya-2 well ("NT-2") has been designed and scheduled for late March 2023, utilising a mobile testing unit, to provide additional information required for the design of in-field processing facilities and the export pipeline; in particular, an accurate measurement of the gas composition."
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