Aminex PLC (LSE:AEX) and Scirocco Energy PLC (AIM:SCIR) have announced that the Ruvuma joint venture has received a two-year extension to its licence from the Ministry of Energy of Tanzania.
Both Aminex and Scirocco each own a 25% share of the JV.
The operator, ARA Petroleum Tanzania Limited (APT) secured the extension until 15 August 2023 to allow the JV to complete the acquisition of 3D seismic data over 200 square kilometres, drill the Chikumbi-1 well and conclude negotiations of the gas terms for the Ruvuma production-sharing agreement (PSA).
With tendering for the 3D seismic completed in June and now approval is being awaited from the Tanzanian authorities before the contract can be awarded, which is expected to lead to the surveying beginning in the current quarter, the companies said.
They added that drilling of the Chikumbi-1 exploration and appraisal well is expected to start in July of 2022.
Based on the latest mapping and internal management estimates from APT, Ruvuma's Ntorya accumulation has mean risked gas in place of 3,024bn cubic feet (Bcf), in multiple lobes to be tested, and a mean risked recoverable gas resource of 1,990 Bcf, which will be appraised by the planned seismic and drilling programme.
Under the farm-out agreement completed with APT last October, Aminex is carried for its share of the associated field development costs up to US$35mln, equivalent to gross development expenditure of US$140mln.
Charlie Santos, executive chairman of Aminex, commented: "We are delighted to receive the extension to the licence and appreciate the Ministry of Energy's steadfast support. We are also thankful for APT's diligent efforts to secure the extension and look forward to updating shareholders on further progress in due course."
Scirocco chief executive officer Tom Reynolds said: "This is a very positive update for the Ruvuma JV partners as the licence extension adds significantly more clarity to the project going forward. It also reflects the quality of the Operator and its status in country which is critical for the future success of the project.
"Most importantly for Scirocco, it provides clarity of licence tenure to potential acquirers within our ongoing discussions regarding the sale of Scirocco's interest in Ruvuma. With a clear licence position, work programme and associated timeline, we are able to present a well-defined pathway to development to prospective purchasers. We look forward to progressing those discussions and providing updates to the market as appropriate."
Aminex shares jumped 31% to 0.69p by midday on Wednesday, while Scirocco's were up 3% at 0.87p.