Business
Tanzania Farm Out Agreement
Tanzania Farm Out Agreement.
About this update from Aminex Plc
[{"type":"text","content":"\n Aminex PLC\n05 February 2007\n\n\n\n\n\n5 FEBRUARY 2007\n\n\n\n AMINEX PLC\n (\"Aminex\" or \"the Company\")\n\n\n FARMOUT OF INTEREST IN NYUNI LICENCE, TANZANIA\n\n\n PROGRESS REPORT ON EAST AFRICA ACTIVITIES\n\n\nAminex PLC, the oil and gas company listed in London and Dublin, (\"Aminex\" or\nthe \"Company\") today announces that its wholly-owned Tanzanian subsidiary Ndovu\nResources Ltd. (\"Ndovu\") has signed an agreement with Key Petroleum Ltd. (\"Key\")\nto farm out an interest in the Nyuni East Songo Songo licence (\"Nyuni\"),\noffshore Tanzania. Aminex is also providing an update on the status of all its\nEast African projects.\n\n\nFARMOUT OF NYUNI INTEREST\n\n\nKey, an Australian company based in Perth, has agreed to farm into Nyuni for a\n20% working interest. In order to earn its 20% interest Key will:\n\n\n • contribute 30% towards the costs of two exploration wells on Nyuni, the\n first of which is due to be spudded in the second quarter of this year and\n the second of which will be drilled later in the year;\n\n\n • issue 2 million new, fully-paid shares in Key to Aminex or such number of\n shares which will be valued at the time of its forthcoming admission to the\n Full List of the Australian Stock Exchange at A$600,000, whichever number of\n shares is the greater; and\n\n\n • contribute 10% of all licence costs arising in addition to drilling with\n effect from 1 November 2006 to the date of this agreement, estimated to be\n $2.5 million which will include the current seismic programme.\n\n\nFurther terms:\n\n\n • If the combined cost of the two proposed wells at Nyuni should exceed\n US$15.4 million, then Key will only be obliged to pay 20% of the excess cost\n over this amount.\n\n\n • The Agreement is conditional upon (1) admission of shares in Key to\n listing on the Australian Stock Exchange, anticipated in the near future,\n and (2) formal approval from the authorities in Tanzania.\n\n\nKey was formed in 2006 by Mr. Ted Ellyard and Mr. Ken Russell. Mr. Ellyard,\nChairman, is best known for his work at Hardman where, during his time as its\nManaging Director, the company grew to be a highly successful explorer in\nMauritania and elsewhere. Mr. Russell, Chief Executive, has worked in the\ninternational oil and gas industry for over thirty years and has held management\npositions in a number of...