Aminex PLC (LSE:AEX) and Scirocco Energy PLC (AIM:SCIR) told their respective investors that a seismic acquisition contract has been awarded for the Ruvuma project, onshore Tanzania.
ARA Petroleum, the operator of the venture, made the award to Africa Geophysical Services (AGS) following an extensive tendering exercise for the 3D seismic programme, which will span some 338 square kilometres.
The venture was able to take advantage of favourable market conditions securing a lump sum contract secured at a price that was considerably below their prior in-house budget for the programme, Aminex highlighted.
"We are delighted that the seismic contract has been awarded and that seismic acquisition operations on the ground are scheduled to commence shortly,” said Aminex chair Charlie Santos. “This award marks an important development for the Ruvuma project.
“APT has made quick progress completing the procurement process and securing highly competitive acquisition rates that benefit the project with considerable financial savings.
The programme will start with the area that includes the Ntorya gas project along with the intended location of the Chikumbi-1 well.
AGS will aim to capture as much data as possible prior to the start of the rainy season and it will resume thereafter without any additional costs to the venture partners.
Scirocco chief executive Tom Reynolds, said: “Following the recent award of the two-year licence extension, the project is now entering a period of operational activity designed to understand the full potential of the development - a key value inflection point.
“The project is now gathering momentum towards development of a proven gas resource into the established Tanzanian gas market."
Aminex’s 25% share of costs is ‘carried’ by ARA Petroleum, under the terms of a farm-out partnership deal (in all, the deal sees the company carried for US$35mln of field development spending, which equates to a gross investment of US$140mln in the project by ARA).