Aminex farms out stake in Ruvuma basin in Tanzania to Solo Oil
16 November 2009
Oil and gas group Aminex has farmed out a 12.5% interest in the Likonde-1 well in Tanzania to Solo Oil.
Likonde-1 is the first well scheduled to be drilled on Aminex's Ruvuma Production Agreement (PSA) in southern Tanzania with spudding likely to occur in about two months.
Under the terms of the deal, Solo will reimburse Aminex for 12.5% of pre-drilling costs amounting to US$1.25 million and pay 18.75% of the drilling cost of Likonde-1 amounting to $3.4 million.
After the drilling of Likonde-1 Solo will have earned the right to participate in any further drilling on the licences covered by the Ruvuma PSA through contributing 12.5% of ongoing costs. If Solo exercises this right it will also then become a full party to the Ruvuma joint operating agreement.
The farm-out agreement still needs Tanzania Government approval and the go-ahead from Solo’s shareholders.
Aminex currently has a 50% interest in the Ruvuma PSA and the remaining 50% is held by Tullow Oil which is the operator.
Aminex chairman Brian Hall said: “Reducing our exposure to drilling in the Ruvuma PSA has been a stated objective of Aminex for some time and represents sensible management of assets and risk. We warmly welcome Solo's participation in Likonde-1.”
Solo is funding the move by raising £6.4 million in a two-stage 0.5p per share placing. After paying the farm-in costs, the company intends to use the balance of the fundraising, expected to be more than £3 million, to strengthen its balance sheet and for general working capital purposes.
David Lenigas, the chairman of Solo, said: “This exciting farm-in opportunity with Aminex and Tullow is the first oil and gas deal undertaken by the company since it changed its investment strategy in July of this year. Likonde -1 is the first hole being drilled in one of the last unexplored major onshore basins in Africa.”
|
Relevant Companies
For more company information click below:
Headlines
31 August 2010
30 August 2010
27 August 2010
20 August 2010
18 August 2010
13 August 2010
09 August 2010
06 August 2010
30 July 2010
29 July 2010
28 July 2010
27 July 2010
26 July 2010
23 July 2010
23 July 2010
22 July 2010
21 July 2010
19 July 2010
16 July 2010
12 July 2010
09 July 2010
08 July 2010
07 July 2010
06 July 2010
05 July 2010
02 July 2010
06 May 2010
13 April 2010
24 March 2010
23 March 2010
23 March 2010
23 March 2010
23 March 2010
23 March 2010
23 March 2010
23 March 2010
23 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
22 March 2010
19 March 2010
19 March 2010
» See all News
Features
31 August 2010
28 July 2010
23 July 2010
13 April 2010
24 March 2010
22 March 2010
19 March 2010
19 March 2010
18 March 2010
16 March 2010
15 March 2010
12 March 2010
11 March 2010
08 March 2010
05 March 2010
05 March 2010
» See all Features
Round-Ups
27 August 2010
20 August 2010
13 August 2010
06 August 2010
30 July 2010
23 July 2010
16 July 2010
09 July 2010
02 July 2010
19 March 2010
19 March 2010
12 March 2010
12 March 2010
05 March 2010
05 March 2010
28 February 2010
Popular
31 August 2010
28 July 2010
27 August 2010
30 August 2010
04 December 2009
30 July 2010
18 August 2010
26 July 2010
01 February 2010
29 July 2010
07 July 2010
19 July 2010
25 November 2009
26 January 2010
08 July 2010
20 August 2010
|