Shares of Aminex plc (LON: AEX) today surged 21.2% after the company announced the completion of its farm-out deal with ARA Petroleum Tanzania Limited (APT).
Robert Ambrose, Aminex Plc's CEO said:”We are delighted to finally complete the farm-out and hand over operatorship of the Ruvuma PSA to APT,”
“We are also extremely grateful to ARA Petroleum for its support over the past 12 months and look forward to the work programme progressing.”
Aminex is set to retain a 25% interest in the Ruvuma asset – which includes the Ntorya gas project and exploration areas – and APT will fund a forward programme including the drilling of the Chikumbi-1 well and a new seismic programme over at least 200 square kilometres.
APT has been supporting Aminex financially over the past 12 months as the two companies waited for regulatory approval by providing Aminex with a $3 million upfront payment and a $2 million loan.
APT is set to cover up to $35 million of Aminex’s costs for the programmes that the two companies are partners. The firm is expected to initiate a committee meeting as the new project operator to present the work schedule for the Chikumbi-1 project.
Aminex share price
Aminex shares today surged 21.2% to trade at 1.60p having rallied from Thursday’s closing price of 1.32p, but later fell below Thursday’s price.