Dublin-listed oil and gas exploration company Aminex has announced the completion of the Ruvama farm-out to ARA Petroleum Tanzania.
Aminex said in a statement on Friday that its wholly owned subsidiary, Ndovu Resources, has transferred a 50 per cent interest in, and operatorship of, the Ruvuma PSA to ARA Petroleum Tanzania (APT).
The company borrowed $3 million (€2.5m) and $2 million from ARA Petroleum LLC (ARA) over the past year, which has now been repaid by means of the $5 million cash consideration payable to the company on completion of the farm-out.
The interest that had accrued on the money has also been repaid from the interim period costs that are due to the company under the farm-out agreement.
The company now holds a 25 per cent interest in the Ruvuma PSA with a full carry to “potentially significant volumes” of production.
The farm-out includes a full carry for a minimum work programme including the drilling and testing of the Chikumbi-1 well and the acquisition of 3D seismic over a minimum of 200 sq km within the Ntorya area.
The full carry for Aminex’s share of costs up to $35 million in respect of its 25 per cent interest implies a potential expenditure during the carry period of up to $105 million for the aggregate 75 per cent working interest held by Aminex and APT.
Aminex chief executive Robert Ambrose said: “We are delighted to finally complete the farm-out and hand over operatorship of the Ruvuma PSA to APT.
“Aminex and Ndovu stand ready to provide all reasonable assistance to APT to help them in this regard and beyond. We are also extremely grateful to ARA Petroleum for its support over the past 12 months and look forward to the work programme progressing.”