Continental Focus, International Reach

Aminex Submits 2020 Ruvuma Work Plan

Thursday, November 7, 2019

Aminex plc has submitted the 2020 Work Program and Budget for the Ruvuma PSA to the Tanzanian government for approval. The program is contingent on the approval of various license matters and anticipates a robust operations program in 2020 across the contract area including the drilling of Chikumbi-1, the acquisition of more than 500 km2 of 3D seismic designed to fully image the Ntorya gas field and the acquisition of approximately 450 line km of 2D seismic over the remainder of the contract area to identify other leads and prospects. The estimated gross cost of the 2020 drilling and seismic program is approximately $40 million and will see Aminex’s 25% post farm-out share fully carried by APT under the terms of the Ruvuma Farm-Out Agreement.

As previously announced, both APT and the Company have seen recent positive movements in Tanzania with respect to the general business environment, growing demand for natural gas consumption and the approaching completion of the government’s review of production sharing agreements. As a result of these encouraging developments, it has been agreed to fast-track select Chikumbi-1 “pre-drill” activities including construction of an access road to the Chikumbi-1 wellsite, construction of the drilling surface location, ordering of select long lead items and to progress permitting activities. This will enable the joint venture group to commence drilling operations on Chikumbi-1 as soon as possible following the granting of the extension of the Mtwara license. Furthermore, APT has taken proactive steps to hire key in-country management personnel including the former Technical Director of PDO in Oman, who has been appointed General Manager. APT has also commenced the process of opening an operations office in Dar es Salaam. Having key personnel available and a local office will assist a smooth hand-over of operational responsibility from Aminex to APT while the Farm-Out completes and will optimize operational efficiencies.

Aminex will shortly receive the first payment from ARA Petroleum LLC as an advance of up to $3 million against the cash consideration of $5 million due on completion of the Ruvuma Farm-Out.

The company has applied for a 3-year extension to the Nyuni Area PSA with a revised work program. The extension and associated work program are subject to approval by the Tanzanian authorities.