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Aminex says efforts continue to secure regulatory approvals for farm-out deal for Ruvuma asset in Tanzania

Aminex said it continues to work closely with the authorities to move forward as soon as possible

oil and gas operations
A deal will facilitate the drilling of the Chikumbi-1 well

Aminex PLC (LON:AEX) has updated investors on the ongoing efforts to close the proposed farm-out for the Ruvuma asset in Tanzania.

The company, in a statement, highlighted that the completion is conditional upon the receipt of certain approvals – including joint venture partner approvals and regulatory approvals from Tanzania government departments.

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Specifically, it requires confirmation of an extension to the Mtwara Licence and also approval by the Tanzanian Government of the transfer of the interest and operatorship.

“Aminex and APT have had positive meetings with the Tanzania Government regarding the Ruvuma farm-out and look forward to the continued support of the Tanzanian authorities in closing out these remaining conditions and, in so doing, facilitating the progression of the Ntorya Development and specifically the drilling of the Chikumbi-1 well,” said Jay Bhatacherjee, Aminex chief executive.

Back in July 2018, Aminex struck the farm-out deal with Omani conglomerate, The Zubair Corporation, which via the ARA Petroleum subsidiary will acquire 50% of the Ruvuma asset. Aminex will retain 25% alongside existing partner Solo Oil PLC (LON:SOLO) which also has 25% of Ruvuma.

In a note to clients, analysts at ‘house’ broker Shore Capital said they are “optimistic that the (farm-out) transaction can be completed in a timely manner.”

They added: “Our last published Risked NAV estimate for Aminex stands at 4.8p/share, reflecting the improved risk profile that we expect to result from the farm-out deal, which will see the company carried through a material work programme and straight into production at the flagship Ruvuma project.”

In afternoon trading, Aminex shares were changing hands at 1.20p each, down 4% on Wednesday’s close.

 -- Adds analyst comment, share price --

Quick facts: Aminex PLC

Price: 1.175 GBX

LSE:AEX
Market: LSE
Market Cap: £44.31 m
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