Aminex Tanzania Plan Surprises Solo

AIM-listed explorer Solo, 25% stakeholder in the Ruvuma petroleum sharing agreement in Tanzania, expressed its surprise November 8 at unexpected calls on its cash from partner Aminex.

"The board of Solo was not made aware of, or consulted on, the inclusion of the "fast-track" items in the firm 2020 work programmes and budgets presented to the Tanzanian authorities and the associated expenditure requirements... Such notification and consultation is a requirement pursuant to the terms of the joint operating agreements in place between Aminex and Solo," it said in a stock exchange announcement, adding it would "seek to further understand in short order the background to its actions."

In its November 7 operational update, Aminex said that farminee ARA Petroleum Tanzania (APT) has agreed to fast-track select Chikumbi-1 pre-drilling activities and has appointed a management team to oversee Tanzanian operations. 

The 2020 work programmes and budgets for all licences in Tanzania have been submitted to the government for approval which includes a gross contingent $40mn programme for the drilling of Chikumbi-1 and the acquisition of extensive 3D and 2D seismic surveys over the Mtwara licence, the costs for which Aminex is fully carried, it said.

Aminex said it would soon begin receiving advance payments of up to $3mn against the cash consideration due on completion of the farm-out, and it has applied for a three-year extension of the Nyuni Area PSA with a revised work programme.

Aminex said in August that parting with two thirds of its 75% stake would yield a $5mn cash inflow and a $35mn carry through the further appraisal and development of the Ntorya gas-field. And Solo said it was "wholly supportive of the operator's proposed work programme that aims to move the JV closer to re-establishing production from the field."