Aminex has received confirmation from the Tanzanian Ministry of Energy and Minerals that the minister has no objection to the proposed transfer of assignment for the sale of up to a 13% stake in the Kiliwani North Development License (KNDL) by Aminex subsidiary Ndovu Resources Ltd. to Solo Oil Plc.
The companies signed binding, conditional heads of terms in November for a total consideration of $7 million.
The sale now remains subject only to a formal deed of assignment being completed and signed by all participating parties. The parties to the transaction will observe all customary Tanzanian tax clearance procedures.
Aminex and Solo will now proceed with the assignment of the initial 6.5% interest in KNDL for $3.5 million. The parties have agreed to extend the deadline on the option to purchase an additional 6.5% on the same terms to Jan. 30, 2015, as a result of the longer-than-expected time taken to obtain the no-objection notification.
The KNDL contains the Kiliwani North Field, which is expected to start production at about 566 Mcm/d (20 MMcf/d) in early 2015. Once the deed of assignment is complete, and if Solo elects to take up its full 13% entitlement, the KNDL joint venture partners will be Ndovu Resources Ltd. (Aminex) with 52% and operator, RAK Gas with 25%, Bounty Oil with 10% and Solo with 13%.
Independently verified resources at KNDL are estimated to be 1.3 Bcm (45 Bcf) of gas in place. Construction of a 2-km (1.2-mile) pipeline from the KN1 wellhead to the new Songo Songo processing plant is expected to be completed by the end of this month.
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