Irish oil and gas explorer Aminex has extended the completion date for its farm-out of the Ruvuma licence in Tanzania until the end of October.
The ongoing review of all oil and gas companies’ production sharing agreements (PSAs) in Tanzania continues to be the cause of the delay in completing the agreement with ARA Petroleum of Oman, Aminex said.
The farm-out deal will result in a $5m cash inflow, and a $35m carry through in the development of the Ntorya gas field.
John Bell, chairman of Aminex, 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 $5m cash inflow and a $35m carry through the further appraisal and development of the Ntorya gas field.”
He added: “In the meantime, progress is being made at Kiliwani.”
The group said its monthly expenses had fallen by 34pc from 2018 levels, adding that it will continue to “closely monitor” all expenses.
Earlier this year, Aminex raised £1.85m in share capital to accelerate its work in Tanzania through a stock issue.
In February, the group named Mr Bell as its new chairman. A chartered engineer, Mr Bell has more than 30 years’ experience in the energy sector, having worked at vice-president level or managing director level with BP, Statoil AS and Suncor Energy (Syria).