Aminex reduces administrative expenses by a third
Company is awaiting approval from Tanzania for a project that could yield $40m
Aminex, the gas explorer and producer, delivered a corporate update to shareholders on Friday.
Gas explorer Aminex has reduced its administrative expenses by a third since last year and is awaiting the go-ahead from the Tanzanian Government to move forward with a project that it says could ultimately yield $40 million.
The company, which is focused on Tanzania, said the longstop date for completion of the Ruvuma Farm-Out to ARA Petroleum Tanzania Limited has been extended to October 31st.
Aminex is continuing to await government approval to gain an extension of the Mtwara licence, transfer of the interest, and operatorship of the production sharing agreement.
All holders of production sharing agreements are similarly awaiting the outcome of a review by the attorney general’s office. The company said it would update shareholders further in due course.
Aminex chairman John Bell said: “We have cut costs to appropriate levels and we are awaiting Tanzanian Government approval to move forward with the Ruvuma farm-out to ARA Petroleum of Oman, which upon completion will deliver a $5 million cash inflow and a $35 million carry through the further appraisal and development of the Ntorya gas-field. In the meantime, progress is being made at Kiliwani.”
The reprocessing of the select 2D seismic lines over the Kiliwani north development licence acreage is complete with “minor re-iterations” requested from the processor.
“Data from the reprocessing will benefit the design of a 3D seismic survey and remapping of the licence, using the reprocessed lines, will occur once we have received the final data,” Aminex said in a note to investors.
“The company continues to source equipment to perform the re-entry and remedial work on Kiliwani North-1.
“The re-entry, which has been designed to be carried out at minimal costs, is of value to investigate fluid levels in the well and provide an accurate bottom hole pressure measurement which will provide useful reservoir data for future operations and production and equipment is being ordered.”
Further to its presentation at this year’s annual general meeting, Aminex said it had reduced its general and administration expenses.
On a like-for-like basis, the current monthly general and administration expense for the group has been reduced by approximately 34 per cent from 2018 levels.