Tanzania: Aminex Inks Nyuni Area PSC

Aminex PLC (“Aminex” or the “Company”) announces today that it has signed a new Production Sharing Agreement (‘PSA’) with the Tanzanian Minister of Energy & Minerals granting it the right to explore for oil and gas over 1,690 km² in the Nyuni area off the coast of Tanzania  in the Indian Ocean. 

The PSA, known as “The Nyuni Area PSA”, has been awarded to Aminex’s wholly-owned Tanzanian subsidiary Ndovu Resources Ltd. and replaces the Nyuni-West Songo-Songo PSA which is expiring on completion of its full term and satisfaction of work obligations.

Aminex and partners have already drilled four wells in this area, two of which were discoveries of gas. A twenty-five year Development Licence for the Kiliwani North Gas Field was carved out of the earlier PSA in April this year.

The Nyuni Area PSA includes an additional four contiguous blocks totalling 338 km² to the north of the previous licence area. These northern blocks are relatively unexplored and Aminex believes that they hold significant potential for structures analogous to recent deepwater  discoveries to the east.

Estimated contingent and prospective resources for the Nyuni PSA remain at a total 2.8 trillion cubic feet (‘tcf’) on a Pmean basis.

Working interests in the Nyuni PSA are as follows: Ndovu Resources (Aminex) 70%; RAK Gas 25%; Bounty Oil 5%.

Commenting on the announcement, Aminex CEO, Stuard Detmer, said, “Signature of the Nyuni PSA extends Aminex’s position as a leader in offshore Tanzania, one of the most exciting exploration provinces in the world. The Company has already made two discoveries in the Nyuni  area including the Kiliwani North field, which it expects to put into commercial production next year. Aminex believes there is considerable scope for establishing a new play fairway on the continental shelf, which could share similarities to recent deep water drilling successes in the  region.”

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Source: Aminex, October 31, 2011