On June 16, 2004 Aminex announced that its Tanzanian subsidiary Ndovu was in dispute with Petrom in relation to unpaid drilling costs. That dispute has now been resolved and, under the terms of a formal settlement agreement:
(1) Petrom will pay Ndovu the sum of US$3,400,000 in respect of past costs due for the Nyuni-1 well
(2) Petrom will pay Ndovu the sum of US$1,275,000 in settlement of all its other obligations as a joint-venture partner in the Nyuni project.
(3) Petrom will have no further rights, obligations or claims under the Nyuni Farm-in and Nyuni joint operating agreements
(4) Ndovu is providing an option expiring on June 30, 2006 for Petrom to rejoin the Nyuni project as a full, paying joint-venture partner
(5) Ndovu is withdrawing all legal claims against Petrom in the English High Court.
Commenting, Aminex Chief Executive Brian Hall said:
'This agreement is a very satisfactory outcome to a long running and damaging dispute, resolution of which will enable Aminex to move forward more positively in Tanzania and elsewhere. We are grateful to the management of Petrom for their constructive approach to this situation.'
Nyuni is a license area offshore the Rufiji River delta of Tanzania, acquired by Aminex as a consequence of the acquisition of Tanzoil NL in February 2002.
Nyuni-1 was drilled to a depth of 3,895 meters and was the first offshore exploration well in Tanzania for many years. The well logged hydrocarbon saturations in Lower Cretaceous and Jurassic formations, encountered numerous oil and gas shows throughout a thick sandstone sequence and established the presence of oil from a Jurassic source in the region for the first time.
Petrom is the former state oil company of Romania and listed on the Bucharest Stock Exchange. Following recent privatization it is now majority-controlled by OMV of Austria.
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