Ruvuma Partners Retain FirstEnergy for Farm-out

Aminex and its JV partner Solo Oil have engaged FirstEnergy Capital to manage the farm-out process for their interest in their Ruvuma PSA in Tanzania. The JV’s acreage is estimated to contain a total 5.75 Tcf discovered and undiscovered Pmean Gas Initially-in-Place.

Aminex operates and holds a 75% working interest in the Ruvuma PSA. Solo Oil has a 25% working interest and will participate alongside Aminex in the farm-out process by way of a Vendor Collaboration Agreement. The two companies expect to farm-out jointly up to a 50% working interest in the Ruvuma PSA, for which the current work requirements include two wells to be drilled by the end of 2013. A program to acquire additional 2D seismic over the PSA is being prepared and is expected to commence before the end of the year.
 

The acreage borders the area where explorers offshore Mozambique have discovered prolific natural gas reserves. Earlier this year gas was discovered onshore in the Ruvuma PSA at the Aminex-operated Ntorya-1 well, which successfully flow tested at 20 Mmcf/d and 139 bpd of 53° API condensate on a 1” choke.

Aminex said that the Ntorya-1 discovery has strong commercial potential and is estimated to contain 1.2 Tcf discovered and undiscovered Pmean Gas Initially-In-Place. Future production from the Ntorya discovery is planned to be transported via a 36” diameter gas pipeline, which is now under construction and due to be completed in early 2014, from near Mtwara to Dar es Salaam, the largest gas market in Tanzania.

FirstEnergy is a leading international energy-focused investment bank, providing full-service energy expertise including a dedicated technical advisory group to oil and gas property acquisitions and divestitures.

Aminex CEO, Stuard Detmer, commented: “Aminex has initiated a formal farm-out for the Ruvuma PSA to manage its future capital expenditure exposure on this highly prospective block. FirstEnergy's experience and capabilities are expected to be of significant assistance to the Company in order to access a full spectrum of potential farm-in partners and to maximise the potential farm-in terms to the benefit of the Company’s shareholders.”