leadf
logo-loader
viewAminex PLC

Aminex’s Bell positive on Tanzania gas future as Ruvuma farm-out moves forward

“This farm-out, long in the making, continues to excite the board for what it can deliver to the company,” chair John Bell said

Aminex PLC - Aminex’s Bell positive on Tanzania gas future as Ruvuma farm-out moves forward

Aminex PLC (LON:AEX) chair John Bell told investors, in the company’s full-year results, that he remained positive about the future despite a frustrating 2019 waiting for regulatory clearance and more recently the challenges of the coronavirus (COVID-19) pandemic.

Significantly, as announced on Monday, the company secured an extension to its licence for the Ruvuma gas project after it was approved by the Tanzanian authorities for one additional year. Importantly, that extension was one of the last remaining conditions required for Aminex to complete a farm-out transaction with ARA Petroleum.

READ: Ntorya project set to advance as Tanzania extends licence

Together the partners will advance Ruvuma’s Ntorya discovery towards development with a programme of work including at least on one well.

“This farm-out, long in the making, continues to excite the board for what it can deliver to the company,” Bell said in Thursday’s statement.

“As previously described, once completed, the farm-out should see the company fully carried to material levels of production and revenue without the need to return to shareholders for any additional funding for Ruvuma.

“While we continued to experience delays to this game-changing project, the board was conscious in the intervening period to use time wisely,” he added.

He highlighted that prior to COVID-19, the company had reduced corporate overheads, including G&A costs, and, had created efficiencies in the business so that it is robust and derisked.

Bell, meanwhile, cautioned that it is possible that the most recent COVID-19 related impacts particularly related to oil consumption and crude prices, may necessitate a further round of cost-cutting and consolidation whilst Aminex continues to await receipt of Tanzanian government consents.

In terms of financial results, Aminex reported a US$15.2mln loss for the year including a US$12.3mln non-cash impairment.

Quick facts: Aminex PLC

Price: 0.575 GBX

LSE:AEX
Market: LSE
Market Cap: £21.68 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Aminex PLC named herein, including the promotion by the Company of Aminex PLC in any Content on the Site, the Company receives from said issuer...

FOR OUR FULL DISCLAIMER CLICK HERE

Morning Report: FTSE 100 continues to rise despite surge in UK unemployment

Headlines from the Proactive UK newsroom. The FTSE 100 has continued to rise after the 4% plus gain yesterday on hopes lockdown measures might be easing. The blue-chip index is currently sitting around 6055. Underlining the pressure on the UK government, jobless numbers soared in April. An...

on 19/5/20

2 min read