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Aminex and Solo Oil close on Kiliwani deal

Last updated: 06:44 12 Nov 2014 GMT, First published: 07:44 12 Nov 2014 GMT

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Aminex’s (LON:AEX) sale of a 13% stake in the Kiliwani North Development Licence to Solo Oil (LON:SOLO)is just waiting for approval from the Tanzanian authorities and should close shortly, it said today.

The heads of both companies hailed the deal as a landmark as it would mean first revenues from their assets in Tanzania.

Neil Ritson, Solo’s chairman, added it had recently reviewed the draft gas sales agreement and was confident that it can be signed shortly.

Solo will pay US$7mln for the 13% stake in Kiliwani.

Jay Bhattacherjee, Aminex’s chief, said:  "This part disposal of Kiliwani North, once completed, will enable Aminex substantially to repay outstanding corporate debt and will provide further opportunities for Aminex to expand in Tanzania and across the continent."

Aminex has started work on the 2 kilometre long tie-in pipeline from the new Songo Songo gas processing plant to the Kiliwani North 1 well, with work scheduled to be completed by the end of 2014.

Production from KN1 is expected to start early next year and reach an 20mln cubic feet per day (mmscfd) or the equivalent to more than 3,000 barrels of oil per day in 2015.  

Gross in-place unrisked mean gas resources at KN1 are estimated at 45bn cubic feet.

The Songo Songo gas processing plant is connected with the newly constructed 36-inch gas pipeline from Mnazi Bay to Dar es Salaam.

 

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