Aminex, through its wholly-owned subsidiary, Ndovu Resources, has completed the transfer of 50% interest and operatorship of the Ruvuma PSA to ARA Petroleum Tanzania (APT).
Over the past 12 months, the Company has borrowed $3 million (the ‘Advance’) and $2 million (the ‘Loan’) from APT. The Advance and the Loan have been repaid to ARA through the $5 million cash consideration payable to the Company on completion of the farm-out. The interest that was accrued has also been repaid from the interim costs that are due to the Company under the farm-out agreement.
Also, the security over the Advance, the Loan and associated interest that was put in place by the Company in favour of ARA will be released and discharged.
Aminex now holds a 25% interest in the Ruvuma PSA with a full carry to potentially significant volumes of production. As the new operator of the Ruvuma PSA, APT will call an Operating Committee Meeting (OCM) soon where the program and schedule for the drilling of the Chikumbi-1 well and the 3D seismic acquisition program are to be formally presented.
The Chief Executive Officer of Aminex, Robert Ambrose said, “We are delighted to finally Complete the Farm-Out and hand over operatorship of the Ruvuma PSA to APT. Aminex and Ndovu stand ready to provide all reasonable assistance to APT to help them in this regard and beyond. We are also extremely grateful to ARA Petroleum for its support over the past 12 months and look forward to the work program progressing.”
The farm-out includes a full carry for a minimum work program including the drilling and testing of the Chikumbi-1 well, the acquisition of 3D seismic over a minimum of 200 kilometres square within the Ntorya area, and further production wells and infrastructure as required to propel the project to its estimated P50 production level of approximation. The full carry for Aminex’s share of costs up to US$35 million in respect of its 25% interest implies a potential expenditure during the carry period of up to US$105 million for the aggregate 75% working interest held by Aminex and APT.
/strong.Over%20the%20past%2012%20months,%20the%20Company%20has%20borrowed%20$3%20million%20(the%20'Advance')%20and%20$2%20million%20(the%20'Loan')%20from%20APT.%20The%20Advance%20and%20the%20Loan%20have%20been%20repaid%20to%20strongARA/strong%20through%20the%20$5%20million%20cash%20consideration%20payable%20to%20the%20Company%20on%20completion%20of%20the%20farm-out.%20The%20interest%20that%20was%20accrued%20has%20also%20been%20repaid%20from%20the%20interim%20costs%20that%20are%20due%20to%20the%20Company%20under%20the%20farm-out%20agreement.Also,%20the%20security%20over%20the%20Advance,%20the%20Loan%20and%20associated%20interest%20that%20was%20put%20in%20place%20by%20the%20Company%20in%20favour%20of%20strongARA/strong%20will%20be%20released%20and%20discharged.Aminex%20now%20holds%20a%2025%%20interest%20in%20the%20Ruvuma%20PSA%20with%20a%20full%20carry%20to%20potentially%20significant%20volumes%20of%20production.%20As%20the%20new%20operator%20of%20the%20Ruvuma%20PSA,%20strongAPT/strong%20will%20call%20an%20Operating%20Committee%20Meeting%20(OCM)%20soon%20where%20the%20program%20and%20schedule%20for%20the%20drilling%20of%20the%20Chikumbi-1%20well%20and%20the%203D%20seismic%20acquisition%20program%20are%20to%20be%20formally%20presented.The%20Chief%20Executive%20Officer%20of%20strongAminex/strong,%20Robert%20Ambrose%20said,%20em“We%20are%20delighted%20to%20finally%20Complete%20the%20Farm-Out%20and%20hand%20over%20operatorship%20of%20the%20Ruvuma%20PSA%20to%20APT.%20Aminex%20and%20Ndovu%20stand%20ready%20to%20provide%20all%20reasonable%20assistance%20to%20APT%20to%20help%20them%20in%20this%20regard%20and%20beyond.%20We%20are%20also%20extremely%20grateful%20to%20ARA%20Petroleum%20for%20its%20support%20over%20the%20past%2012%20months%20and%20look%20forward%20to%20the%20work%20program%20progressing.”/ema%20href=https://ibekachikwu.com/wp-content/uploads/2020/10/0abdea2d-d41d-4ae7-92cc-e86de5b46fa7.jpgimg%20class=size-medium%20wp-image-3039%20aligncenter%20src=https://ibekachikwu.com/wp-content/uploads/2020/10/0abdea2d-d41d-4ae7-92cc-e86de5b46fa7-300x267.jpg%20alt=%20width=300%20height=267%20//aThe%20farm-out%20includes%20a%20full%20carry%20for%20a%20minimum%20work%20program%20including%20the%20drilling%20and%20testing%20of%20the%20Chikumbi-1%20well,%20the%20acquisition%20of%203D%20seismic%20over%20a%20minimum%20of%20200%20kilometres%20square%20within%20the%20Ntorya%20area,%20and%20further%20production%20wells%20and%20infrastructure%20as%20required%20to%20propel%20the%20project%20to%20its%20estimated%20P50%20production%20level%20of%20approximation.%20The%20full%20carry%20for%20Aminex’s%20share%20of%20costs%20up%20to%20US$35%20million%20in%20respect%20of%20its%2025%%20interest%20implies%20a%20potential%20expenditure%20during%20the%20carry%20period%20of%20up%20to%20US$105%20million%20for%20the%20aggregate%2075%%20working%20interest%20held%20by%20strongAminex/strong%20and%20strongAPT/strong.){kind=link}