Solo Oil and Aminex have signed the asset sale agreement for the first 6.5% interest of a previously announced $7 million sale of up to 13% of Aminex’s Kiliwani North Development License (KNDL), according to a news release. The agreement still awaits formal approval by the Tanzanian authorities and the formal signing of agreement by all partners.
In addition, the companies announced they have agreed to amend the original terms of the agreement to allow Solo the option to purchase the additional 6.5% interest in the license to a period of 30 days after the gas sales agreement (GSA) has been agreed on the same terms as the first 6.5% interest, the release said.
The KNDL contains the Kiliwani North 1 (KN1) well, which Aminex and Solo expect to produce at about 566 Mcm/d (20 MMcf/d) when onstream.
Independently verified resources at Kiliwani North are estimated to be 1.26 Bcm (45 Bcf) of gas in place. Construction of the 2-km (1.2-mile) pipeline from the KN1 wellhead to the new Songo Songo processing plant is underway and expected to be completed shortly, according to the release. The partnership has been notified by the Tanzanian Petroleum Development Corp. (TPDC) that pressure testing of the pipeline is expected to commence during first-quarter 2015.
In the release Aminex said the company’s board expects the GSA to be signed prior to any gas being delivered for pressure testing or commissioning.
The key terms of the proposed disposal are:
- The initial acquisition will consist of a cash payment of $3.5 million for 10% of Ndovu’s 65% interest in KNDL, representing a 6.5% interest in the entire KNDL; and
- The second acquisition will consist of an option by Solo to acquire a further 10% of
Ndovu’s 65% interest in KNDL (a 6.5% interest in the entire KNDL) on the same terms as the Initial Acquisition 30 days after the signing of the GSA, the release said.
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