Farm Out of Interest in Ruvuma

16 Nov 2009 07:00



16 November 2009

AMINEX PLC

FARM-OUT OF INTEREST IN RUVUMA BASIN WELL, TANZANIA

Aminex PLC ("Aminex") announces that it has farmed out a 12.5% interest in the Likonde-1 well in Tanzania to Solo Oil PLC ("Solo"). Likonde-1 is the first well scheduled to be drilled on Aminex's Ruvuma Production Agreement (PSA) in southern Tanzania with spudding likely to occur in about two months, the precise date depending on rig move logistics. A rig contract has been signed. 

Under the terms of the farm-out agreement Solo will (1) reimburse Aminex for 12.5% of pre-drilling costs amounting to US$1.25 million and (2) pay 18.75% of the drilling cost of Likonde-1 amounting to $3.4 million. After the drilling of Likonde-1 Solo will have earned the right to participate in any further drilling on the licences covered by the Ruvuma PSA through contributing 12.5% of ongoing costs. If Solo exercises this right it will also then become a full party to the Ruvuma joint operating agreement. 

The farm-out agreement is subject (1) to formal approval from the Government of Tanzania and (2) to a general meeting of Solo's shareholders to approve certain matters concerning the issue of new shares. 

Aminex currently has a 50% interest in the Ruvuma PSA and the remaining 50% is held by Tullow Oil which is the operator. 

Commenting, Aminex chairman Brian Hall said: "Reducing our exposure to drilling in the Ruvuma PSA has been a stated objective of Aminex for some time and represents sensible management of assets and risk. We warmly welcome Solo's participation in Likonde-1. Solo is an AIM company which is new to oil exploration but with a highly experienced management team. There is rapidly rising interest in this under-explored area and a first well is currently being drilled by Anadarko and partners in the Mozambique part of the basin. Likonde is a robust prospect and we are looking forward to commencing drilling and putting it to the test." 

For further information:

Brian Hall  Aminex +44 (0) 20 7291 3100

Archie Berens Pelham +44 (0) 20 7337 1509

Ends