Aminex announces that its 100% subsidiary Ndovu Resources Ltd. has entered into an agreement (“Rakgas Agreement”) to farm-out a 25% interest in the Nyuni PSA in Tanzania to The Ras Al Khaimah Gas Commission (known as Rakgas). Under the terms of the Rakgas Agreement, Rakgas will pay 37.5% of the costs of two wells to be drilled this year on the Nyuni PSA up to an aggregate of US$15.4 million, thereafter paying its 25% share of all costs in excess of US$15.4 million going forward. After the farm-out Ndovu Resources Ltd. will remain the largest interest holder in the Nyuni PSA with an interest of 39%. Other partners in the Nyuni PSA are Key Petroleum (20%), East Africa Exploration Ltd. (10%) and Bounty Oil (6%). The Rakgas Agreement is conditional upon formal approval from the Government of Tanzania.
The first of two wells on the Nyuni PSA is due to be spudded by the Caroil-6 land rig in June, drilling from a small island close to the Songo-Songo producing gas field. The precise location of the second well has yet to be determined but will be drilled immediately following the first well.
Ras Al Khaimah is a member state of the United Arab Emirates and Rakgas was established by decree of the Ruler in 1984. In 2007 Rakgas was converted into a limited liability company under the chairmanship of His Highness Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah. Rakgas has other exploration and production efforts currently under way in Tanzania.
Brian Hall, Chief Executive commented:
“The Placing being arranged by Davy and Bridgewell will enable Aminex to move forward rapidly with its exploration projects in East Africa and elsewhere, commencing with the drilling of the first of two wells on the Nyuni East Songo Songo Production Sharing Agreement offshore Tanzania, for which a rig has been contracted. The rig will become available as soon as it has finished drilling its current well and is scheduled to commence drilling operations for Aminex in June, 2007.
We are very pleased to have Rakgas participate in the Nyuni PSA at an exciting moment when drilling is about to commence. In a short time Rakgas has assembled a team of highly experienced international oil and gas specialists and we will very much welcome their input to this project and look forward to close co-operation with them in the future.”
