Aminex Plc has reached a binding agreement to sell up to a 13% interest in the Kiliwani North Development Licence (KNDL) in Tanzania to Solo Oil Plc for a total consideration of $7 million.
Initially Solo will acquire a 6.5% interest in KNDL from Aminex’s wholly-owned subsidiary Ndovu Resources Ltd. for a total consideration of $3.5 million and will have a further 45-day option to purchase an additional 6.5% interest in the KNDL for $3.5 million.
The KNDL contains the Kiliwani North 1 well, which the partnership expects to produce at about 566 Mcm/d (20 MMcf/d) in early 2015. Independently verified resources at Kiliwani North are estimated to be 1.3 Bcm (45 Bcf) of gas in place. Construction of a 2-km (1.2-mile) pipeline from Kiliwani North 1 to the new Songo Songo processing plant has now commenced and is expected to be completed in early 2015.
The disposal of an interest in the KNDL is subject to formal approval from the Tanzanian authorities and to partner preemption rights, which must be exercised within 30 days, in absence of which they will lapse.
Aminex and Solo are already partners in the Ruvuma production-sharing contract (PSC) in Tanzania, with 75% and 25% interests respectively, where gas was discovered in 2012 at Ntorya-1. Ndovu is the operator of both the Ruvuma PSC and the KNDL.
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