Business
CONCLUSION OF KILIWANI NORTH PARTIAL DISPOSAL
CONCLUSION OF KILIWANI NORTH PARTIAL DISPOSAL.
About this update from Aminex Plc
[{"type":"text","content":"\n \nRNS Number : 9665T Aminex PLC 04 April 2016 \n\n \nAminex plc\n \nconclusion of KILIWANI NORTH PARTIAL DISPOSAL\n \nAminex PLC (\"Aminex\" or \"the Company\"), the Africa-focused oil and gas company, is pleased to advise that it has executed a Sale and Purchase Agreement (\"SPA\") for the disposal of a 3.825% interest in Kiliwani North Development Licence (\"KNDL\") to Solo Oil plc (\"Solo\") for a total cash consideration of US$2.16 million. Following full receipt of the consideration, Solo's interest will increase from its current 6.175% to a 10% interest in KNDL. As announced on 11 February 2016, the transaction represents the part exercise of its pre-existing option to acquire a further 6.175% interest. The remaining entitlement under the option has now expired.\n \nKey Highlights\n \nUnder the terms of the agreement Solo's interest will increase across three payment tranches to Aminex for a total cash consideration of US$2.16 million:\n \n· Initial investment of US$566,802 for an additional 1% interest on signature of the SPA, increasing Solo's total interest from 6.175% to 7.175% \n \n· A second investment of US$708,502 for a further 1.25% interest within 15 days of first US$ payment being received for gas from Kiliwani North-1 (\"KN-1\"). Solo's total interest will increase to 8.425% \n \n· A third investment for the balance of US$892,712 for an additional and final 1.575% interest within 15 days of the commercial operations date being declared, taking Solo's total and final interest to 10%\n \nIf a tranche is missed, then that option is no longer exercisable. The tranches are separate and not inter-conditional.\n \nShould all three tranches close Aminex will have a 51.75% operated stake in Kiliwani North Development Licence.\n \nThe KN-1 well, which is now ready to begin production, has been ascribed contingent resources (2C) of gross 28 billion cubic feet by LR Senergy and the Company expects to book reserves from this well by the year-end, marking the first reserves for the Company in Tanzania. Gas from KN-1 will be sold to the Tanzania Petroleum Development Corporation (\"TPDC\") under an agreed Gas Sales Agreement at wellhead for an agreed price of US$3.00 mmBTU (approximately US$3...