REG - Aminex PLC - Ruvuma Gas Sales Agreement signed

AminexAnnouncement

10/01/2024 15:00

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RNS Number : 2930Z  Aminex PLC  10 January 2024

10 January 2024

 

Aminex plc

("Aminex" or "the Company")

 

Ruvuma Gas Sales Agreement signed

Aminex PLC, the oil and gas exploration and production company focused on
Tanzania, is pleased to announce that a gas sales agreement ("GSA") for the
sale of gas from the Ntorya location was signed today by the Company's
subsidiary, Ndovu Resources Limited, together with the operator, ARA Petroleum
Tanzania Limited ("APT") and the Tanzania Petroleum Development Corporation
("TPDC").

Key terms of the GSA include:

·    The GSA will continue until the earlier of the expiry or termination
of the Ruvuma PSA or Development Licence or the cessation of economic
production from the Ntorya Gas Field;

·    The Daily Contract Quantity ("DCQ") for the first Contract Year is 40
MMscfd. The DCQ for subsequent years may be increased upon agreement of the
parties. The Maximum Daily Quantity ("MDQ") to be sold under the GSA will be
120% of the DCQ, being 48 MMscfd for the first Contract Year. The Tanzanian
authorities have indicated their willingness to take more gas as production
from the field increases and their ability to take such gas increases, with
production of 140 MMscfd anticipated within a few years of first gas;

·    Payment may be made by the TPDC in US Dollars or Tanzanian Shillings.

Aminex now anticipates early issue of the Development Licence which will allow
the award of a rig contract and enable the drilling of Chikumbi-1 and the
workover of Ntorya-1. The testing of Ntorya-2 is now scheduled for mid-year
using an in-country mobile test unit.

Despite the completion of an environmental impact assessment on the proposed
pipeline to the Madimba Gas Plant and payment of all compensation to relevant
landowners, there has been a delay in the construction of the pipeline. The
Tanzanian authorities now expect the pipeline to be completed by the end of
2024. APT is working closely with the TPDC to expedite construction as soon as
possible.

Aminex, with a 25% non-operated interest, is carried throughout the ongoing
work programme to a maximum gross capital expenditure of $140 million ($35
million net to Aminex). The carry is expected to see the Company through to
the commencement of commercial gas production from the Ntorya gas-field at
zero cost to the Company.

Charles Santos, Executive Chairman of Aminex commented:

"The signing of the gas sales agreement with the TPDC marks a significant
milestone for the Company and the development of the Ntorya field.  We thank
APT, as operator, and the Tanzanian authorities for their efforts in bringing
the execution of the GSA to a close. At the signing today, the Tanzanian
authorities expressed the importance of energy security for Tanzania and its
people and the development of Ntorya is crucial to the provision of
much-needed natural gas. The authorities also indicated that the Development
Licence will be received very soon. We will provide a further update to the
market on the progress of the other Ruvuma workstreams in due course."

The information contained within this announcement is considered to be inside
information prior to its release, as defined in Article 7 of the Market Abuse
Regulation No. 596/2014, and is disclosed in accordance with the Company's
obligations under Article 17 of those Regulations.

 For further information:

 Aminex PLC                          +44 203 355 9909
 Charles Santos, Executive Chairman

 Davy                                +353 1 679 6363
 Brian Garrahy

 Shard Capital                       +44 20 7186 9952
 Damon Heath

 

 

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