Oil and gas company Aminex said it had signed a deal that will see the farm out of some of its Tanzanian assets, selling a stake in its Kiliwani gas project.
The company said it had agreed a deal worth $28 million (€26 million) with Bowleven that will see the firm take a 25 per cent stake in the gas project and a multi-well farm-out for a 50 per cent interest in the Ruvuma Production Sharing Agreement.
The deal will be worth a net $24.375 million in cash, shares and bonuses, taking into account Solo Oil’s participation in the Ruvuma farm-out. Aminex will keep a 30 per cent stake in the Kiliwani project and will remain as operator.
It plans to use the proceeds to “substantially reduce” its debt. The company said it also expects to speed up the pace of operations in the Ruvuma PSA.
Chief executive Jay Bhattacherjee said it had been a transformational period for the firm.
“Our strategy of moving into a development and production phase remains a key objective,” he said. “Following the completion of the combined transactions announced today and with cash expected to be generated from KNDL soon, the board considers the company to be well placed to identify other production and development opportunities in line with the company’s longer-term strategy.”
