Aminex (LON:AEX) has completed the sale of a 3.825% stake in the Kiliwani North gas development onshore in Tanzania to peer Solo Oil (LON:SOLO).
The AIM-listed junior will receive US$2.16mln from the disposal in three stages.
Some US$567,000 for 1% is paid upfront, US$708,000 for 1.25% on first revenues from Kiliwani and US$892,000 for the remaining 1.575% when commercial production is declared.
On completion, the deal will increase Solo’s stake in the project to 10% from 6.175% while Aminex will retain 51.75%.
Aminex added that the KN-1 well is now ready to begin production.
Contingent resources (2C) at Kiliwani are gross 28bn cubic feet gross and Aminex expects to have a reserves estimate from the well by the year-end.
Gas from KN-1 will be sold to the Tanzania Petroleum Development Corporation for US$3.00 mmBTU (approximately US$3.07 per mscf), payable in US dollars.