Aminex signs gas sales agreement with Tanzania Petroleum Development Corporation

Aminex announced that it has executed a fully-termed Gas Sales Agreement (“GSA”) with the Tanzania Petroleum Development Corporation (“TPDC”) for its Kiliwani North gas field, which moves the Company into its much anticipated production phase.
Aminex now set to start first production in Africa

    HIGHLIGHTS:

     Milestone agreement moves the Company into producing phase;
     Take-or-pay depletion contract with gas revenues payable in US Dollars;
     Initial gas price of US$3.00 per mmbtu (approximately US$3.07 per mcf);
     Effective date of GSA 31 December 2015;
     Annual indexation of gas price from 1 January 2016; and
     Agreed payment security mechanism
    Participants in the Kiliwani North Development Licence are:

Ndovu Resources Ltd (Aminex) 55.575% (operator), RAK Gas LLC 23.75%, Bounty Oil & Gas NL 9.5%, Solo Oil plc 6.175% and TPDC 5%.
Aminex Chief Executive, Jay Bhattacherjee, commented:

“Aminex has operated in Tanzania for over 13 years, always working closely with the Tanzanian authorities, and the Kiliwani North Gas Sales Agreement represents a major milestone as the Company’s first commercial production in Tanzania.
“Achieving this agreement has been a long time coming but the final version is comprehensive and will allow production to commence with clarity and security. We are grateful to shareholders for their support and patience. With a mix of production from Kiliwani North and upcoming appraisal and development drilling in the highly prospective Ruvuma basin, we consider Aminex to be well placed for further growth.”

Source: www.aminex-plc.com
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