AMINEX, the international oil and gas exploration company, has announced a deal to increase its stake in the Nyuni Production Sharing Agreement off the coast of Tanzania by 10% to 50% after agreeing terms with East African Exploration Ltd (EAX).
The Dublin registered company – which is headquartered in London – will basically swap its 25% stake in two blocks (L17 and L18) in Kenya, in which EAX is also a participant, for the enlarged Tanzania share.
A cash payment of $1 million (€700,000) will also be paid to EAX. The Nyuni PSA also includes a 40m cubic feet gas discovery at Kiliwani North, previously made by Aminex.
The Irish-listed company values its relevant Kenyan assets at around $700,000 (€481,327) and sees this deal as a major positive.
Said Aminex chairman Brian Hall: “This agreement not only increases our interest in the discovery we made last year at Kiliwani North by 25%, but also consolidates our overall position in Tanzania where we are a well-established operator.
“In addition to Kiliwani North, other prospects on the Nyuni licence are close to being drill-ready and we believe that this represents sensible portfolio management – exiting Kenya where timing and costs are still uncertain,” he added.
From a market perspective, Job Langbroek of Davy Stockbrokers said: “We see the deal as positive as it gives Aminex a greater stake in future gas production and any additional gas found in the Nyuni licence area.
“The Kenyan licences were part of a longer-term strategy to build out an East African position.
“Nonetheless, the shorter-term benefits of greater cash flows from gas development easily outweigh any strategic positioning,” Langbroek said.
“Aminex is working to better define the Kiliwani North gas discovery. It also says that progress is being made in getting regulatory consent for commercial development of this discovery.”
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