Business Irish

Thursday 22 August 2019

Irish explorer Aminex extends completion date for farm-out

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Ellie Donnelly

Ellie Donnelly

Irish oil & gas explorer Aminex has extended the completion date for its farm-out of the Ruvuma licence in Tanzania until the end of October.

The ongoing review of all oil and gas companies' Production Sharing Agreements ("PSAs") in Tanzania continues to be the cause of the delay in completing the agreement with ARA Petroleum of Oman, Aminex said.

The farm-out deal will results in a $5m (€4.5m) cash inflow, and a $35m (€31.4m) carry through in the development of the Nyorya gas field.

John Bell, chairman of Aminex, said: "We have cut costs to appropriate levels and we are awaiting Tanzanian Government approval to move forward with the Ruvuma farm-out to ARA Petroleum of Oman, which upon completion will deliver a $5m cash inflow and a $35m carry through the further appraisal and development of the Ntorya gas-field.”

“In the meantime, progress is being made at Kiliwani," he added.

The group said its monthly expenses had reduced by 34pc from 2018 levels, adding that it will continue to “closely monitor” all expenses.

Earlier this year Aminex raised £1.85m (€2m) in share capital to accelerate its work in Tanzania through a share issue.

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