Dublin-listed Aminex secures six month loan extension

Dublin-listed oil and gas firm Aminex has secured a six month extension for the repayment of its $7.6 million corporate loan facility to allow it to complete ongoing repayment and refinancing discussions.

The group now has until January 31st to repay the loan.

The exploration firm said on Thursday that the option granted to its partner Solo Oil to acquire an additional 6.5 per cent interest in the Kiliwani North Development Licence in Tanzania remains in force with any proceeds from a sale to be used to reduce loans and assist the development of its Ruvuma assets.

Aminex said in November that it had reached a binding agreement to sell up a 13 per cent interest in the licence to Solo Oil for $7million with the company acquiring an initial 6.5 per cent interest in the licence from Aminex's wholly-owned subsidiary Ndovu Resources for $3.5 million and then having a 45-day option to purchase the remaining interest.

The firm said it was in discussions with an unnamed financial institution to make new loan finance available to it to allow it to payback existing obligations and continue to develop its licenses.

The company has previously forecast that it expects to produce first gas from Kiliwani North into the new Tazanian regional pipeline shortly, although this is dependent on final commissioning of the pipeline, completion of a processing plant on Songo-Songo Island, and the signing of a gas sales agreement.

“While there can be no certainty that these discussions will conclude satisfactorily, the board of the company has a reasonable expectation that an initial part of such a facility would be available prior to the commencement of production and will not be conditional on signature of a gas sales agreement in Tanzania or commencement of production,” it said.