Tanzania Completes Farm-Out of Nyuni PSA
Aminex has completed an agreement with East Coast Energy Ltd. of Canada and its wholly-owned Tanzanian subsidiary Pan-African Tanzania Ltd. ('PAT') to farm out part of the Nyuni Production Sharing Agreement offshore Tanzania, subject to formal approval of the Tanzanian authorities.
Under the agreement, the Nyuni PSA will be formally divided into two areas, 'A' and 'B'. Area 'A', which is the subject of the agreement, covers the west part of the Nyuni PSA and represents approximately 25% of the total PSA area. It is adjacent to the producing Songo-Songo gas field operated by PAT. Area 'B', which is not being farmed out, covers the rest of the PSA area and includes the Nyuni prospect which was drilled by Aminex and partners in 2003/4, establishing the presence of Jurassically-sourced crude oil in the region for the first time.
Commencing in October, PAT will undertake, at its own cost, new seismic surveys over Area 'A'. Upon completion of seismic PAT will have the right to participate in an exploration well in Area 'A'. In this case it will, in addition to having borne the cost of seismic in Area 'A', pay 64% of the costs of that well to earn an aggregate 50% interest in Area 'A'. Should PAT decide not to participate in this exploration well, Aminex will be entitled to retain all the seismic data paid for by PAT in area 'A'
In addition to the seismic program over Area 'A', Aminex will use the same seismic vessel to acquire further new data over Area 'B', making efficient use of the vessel's presence in the area. This survey will focus on leads and prospects previously identified by Aminex for better delineation of future drilling locations.
The seismic survey vessel 'Geomariner' is due to arrive in Tanzanian waters in early October to begin work on this project.
Commenting on the announcement Aminex Chief Executive Brian Hall said:
'We are very pleased to have reached this agreement with East Coast Energy Ltd. and look forward to a constructive partnership. As Area 'A' of the Nyuni license is close to the producing Songo-Songo gas field operated by PAT, a successful discovery of gas could be rapidly integrated into PAT's existing production operations. The seismic program planned for fourth quarter 2005 represents the re-start of operations at Nyuni and is part of a program for which Aminex raised new equity earlier this year.'
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