Explorer Aminex to sell US business for up to €3.6m
AMINEX, the Irish explorer focused on Tanzania, has finally agreed to sell its US business for a maximum of $5m (€3.6m).
The sale price includes $150,000 (€109,000) in cash and $350,000 (€254,000) of shares with the remaining $4.5m (€3.2m) to be paid if the US assets start producing gas and oil. Shares in Aminex fell after the complex deal was announced.
New chief executive Jay Bhattacherjee said the company had reached heads of terms agreement to sell the US subsidiary to Northcote Energy and Springer Oil and Gas. There will be a production payment of $10 (€7) per barrel until a total of $4,500,000 (€3,264,000) has been recovered with first payments to start from early January. The buyers will inject a minimum of $1m (€725,000) development capital into the assets in the next 12 months to increase production from the assets. This development capital will be secured by 100 million shares of Northcote pledged by its largest shareholder, RiverBend Energy, worth around $1m.
Mr Bhattacherjee said the planned deal would allow Aminex to focus on Tanzania and to expand in Africa as a production and development business. "The company would be able to retrieve significant value from this non-core asset for our shareholders once the transaction is finalised," he said.
"This would allow the management team to continue their focus on growing the business in Africa and in particular Tanzania. With first gas scheduled for 2015 from the Kiliwani North field and significant progress being achieved on the seismic programme in Ruvuma, the management team looks to the future with confidence."