ARA Petroleum Tanzania Ltd. (APT) completed farm-in of the Ruvuma petroleum sharing agreement (PSA) in Tanzania when Ndovu Resources Ltd., a wholly owned subsidiary of Aminex, transferred 50% interest in the PSA to APT.
Ruvuma PSA consists of two blocks, Mtwara and Lindi, and is spread over an area of 6,079 sq km. About 80% of the area is onshore, while the remaining 20% is offshore. Exploration and appraisal have been ongoing since 2005.
Over the past 12 months, Aminex has obtained a $3 million advance and $2 million loan from ARA Petroleum LLC (ARA), which has now been repaid by means of a $5 million cash consideration payable on completion of the farm-out. The security over the advance, loan, and associated interest put in place by Aminex will be released and discharged.
The farm-out includes full carry for a minimum work program, including drilling and testing of the Chikumbi-1 well, acquisition of 3D seismic over a minimum of 200 sq km within the Ntorya area, and further production wells and infrastructure as required to increase estimated P50 production to about 140 MMcfd (gross project levels).
APT now owns 75% of the PSA and is operator. Aminex holds the remaining 25%.