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Aminex farm-out deal set to close by end of November

“Aminex has a bright future, having signed a farm-out agreement with the Zubair Corporation over the Ruvuma acreage with a fully-funded carry to material cash flow,” said chief executive Jay Bhattacherjee

gas drilling
Ntorya is in the shallow waters close to the coastline of Tanzania

Tanzania-focused Aminex plc (LON:AEX) has confirmed its gas farm-out deal with an Omani industrial group is set to close by the end of November.

The update was provided alongside interim results, which showed the group was sitting on US$2.65mln at June 30.

This should be augmented with US$5mln, paid in two tranches, from the Zubair Corporation, which will develop the company’s Ntorya offshore asset, host to a ‘contingent’ 763bn cubic feet of gas.

The Zubair transaction, inked in July, will see Aminex ‘carried’ on a host of work.

Ambitious work schedule

This will include the drilling, completion, and testing of the Chikumbi-1 well; a 3D seismic data survey over 200-square kilometres within the Ntorya project area; and the establishment of an early production system to achieve first gas at Ntorya to a rate of 40mln cubic feet of gas per day.

Aminex chief executive Jay Bhattacherjee described the tie-up as an “advantageous way to accelerate development and generate material cashflow from Ntorya”. 

“Aminex has a bright future, having signed a farm-out agreement with the Zubair Corporation over the Ruvuma acreage with a fully-funded carry to material cash flow,” he added.

The company also owns low-risk assets at Kiliwani and in the shelfal region of Nyuni, which can be monetised in the near-term.  “Aminex continues to look at new venture opportunities that will provide low risk, robust returns to shareholders whilst diversifying the asset base and risk profile of the company," Bhattacherjee said.

As is common with oil and gas companies in the development phase, Aminex was loss-making; the deficit was US$2.36mln. It also said it had enough cash to see it through at least the next year.

Quick facts: Aminex PLC

Price: 0.975 GBX

LSE:AEX
Market: LSE
Market Cap: £36.76 m
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