Petroleum Africa
Find us on: 
Wednesday, October 15, 2014
Aminex entered a binding agreement to sell up to a 13% interest in the Kiliwani North Development License (KNDL) in Tanzania to Solo Oil for a total consideration of $7 million. Initially Solo will acquire a 6.5% interest in KNDL from Aminex’s wholly-owned subsidiary Ndovu Resources for a total consideration of $3.5 million and will have a further 45-day option to purchase an additional 6.5% interest in the KNDL for $3.5 million.
Aminex will use the net proceeds to reduce significantly the outstanding debt and strengthen its balance sheet.
The KNDL contains the Kiliwani North 1 (KN1) well which the partnership expects to produce at approximately 20 Mmcf/d in early 2015. Once producing this will represent a major milestone for Aminex through providing first revenues from Tanzania. Independently verified resources at Kiliwani North are estimated to be 45 Bcf of gas in place.
Construction of a 2-km pipeline from KN1 to the new Songo Songo processing plant, at no cost to the company, has now commenced and is expected to be completed in early 2015.
The disposal of an interest in the KNDL is subject to formal approval from the Tanzanian authorities and to partner pre-emption rights which must be exercised within 30 days, in absence of which they will lapse.
Aminex and Solo are already partners in the Ruvuma production sharing contract in Tanzania, with respectively 75% and 25% interests, where gas was discovered in 2012 at Ntorya-1. Ndovu is the operator of both the Ruvuma production sharing agreement and the KNDL.
Aminex CEO Jay Bhattacherjee commented: “This disposal of a minority interest in Kiliwani North to Solo, which expands on the existing close partnership between Solo and Aminex in the Ruvuma basin, is an important step towards the Company’s objective of paying down all outstanding corporate debt. Once this objective has been achieved, Aminex will be in a strong position to expand its operations in Tanzania and elsewhere.”
" alt="TAG Oil Completes Fraccing Program at Egypt’s T100 Well in Western Desert">
" alt="Sintana to Expand Asset Base in Namibia with Acquisition">
" alt="Luanda Gives Afentra Nod for Azule Acquisition">
" alt="TotalEnergies Increases Stake in ROC’s Giant Moho Field and Sells Mature Assets">
" alt="Africa’s $824 Billion Debt Burden and Opaque Resource-Backed Loans Hinder its Potential">
" alt="African Refiners Ponder Threats to Energy Security for Africa as Transition Takes Center Stage">
" alt="Invictus Inks Gas Sales MOU to Deliver Power to Eureka Gold Mine">
" alt="Globeleq Acquires the 25 MWp Winnergy Solar PV Plant in Egypt">
