TIDMSOLO
RNS Number : 7208S
Solo Oil Plc
08 November 2019
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS
RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN
WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OF FROM THE
UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER
JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION
WOULD BE UNLAWFUL
8 November 2019
Solo Oil plc
("Solo" or "the Company")
Ruvuma Update
Solo (AIM: SOLO), a gas-focused production and development
company targeting attractive growth opportunities within the
European gas market, notes the following announcement from AMINEX
PLC released on 6 November 2019, which is copied in its entirety
below. Solo has a 25 per cent. interest in the Ruvuma Petroleum
Sharing Agreement (referred to as "Ruvuma" below).
The Board of Solo was not made aware of, or consulted on, the
inclusion of the "fast-track" items in the firm 2020 Work
Programmes and Budgets presented to the Tanzanian authorities and
the associated expenditure requirements referred to below. Such
notification and consultation is a requirement pursuant to the
terms of the joint operating agreements in place between AMINEX PLC
and Solo. The Company remains committed to having a positive
working relationship with AMINEX PLC and will seek to further
understand in short order the background to its actions.
Note: For the avoidance of doubt, references to the "Company"
below relate to AMINEX PLC, and not Solo.
AMINEX PLC
("Aminex" or "the Company")
Corporate and Operations Update
Aminex announces the following developments and updates
regarding the Company's ongoing operations in Tanzania and other
corporate matters.
-- Max Williams is stepping down as Chief Financial Officer
("CFO") having served 25 years with the Company with John Arthur,
Group Financial Controller, promoted to the CFO position;
-- The 2020 Work Programmes and Budgets for all licences in
Tanzania have been submitted to the government for approval which
includes a gross contingent ca $40 million programme for the
drilling of Chikumbi-1 and the acquisition of extensive 3D and 2D
seismic surveys over the Mtwara licence, the costs for which Aminex
is fully carried;
-- ARA Petroleum Tanzania Limited ("APT") has agreed to
fast-track select Chikumbi-1 pre-drilling activities and has
appointed a management team to oversee Tanzanian operations. APT
also intends, in the very near term, to open an operations office
in Dar es Salaam;
-- The Company will shortly commence receiving advance payments
of up to $3 million against the cash consideration due on
completion of the Ruvuma Farm-Out;
-- The Company has applied for a 3-year extension of the Nyuni
Area PSA with a revised work programme.
Change in Chief Financial Officer
Max Williams has elected to step down from his position as CFO
and as a Director of Aminex having served over 25 years with the
Company in various financial roles. John Arthur will assume the
position of CFO but will not have a position on the Board.
John, formerly the Group Financial Controller, has held
financial roles in the oil and gas industry for over 15 years and
has extensive experience in Africa, specifically sub-Saharan Africa
through previous senior held financial roles in Seven Energy
International. Max has worked with John over recent months to
ensure an orderly transition.
Operations Update
The Company has submitted the 2020 Work Programme and Budget for
the Ruvuma PSA to the government for approval. The programme is
contingent on the approval of various licence matters and
anticipates a robust operations programme in 2020 across the
contract area including the drilling of Chikumbi-1, the acquisition
of more than 500 km2 of 3D seismic designed to fully image the
Ntorya gas field and the acquisition of approximately 450 line km
of 2D seismic over the remainder of the contract area to identify
other leads and prospects. The estimated gross cost of the 2020
drilling and seismic programme is approximately $40 million and
will see Aminex's 25% post farm-out share fully carried by APT
under the terms of the Ruvuma Farm-Out Agreement.
As previously announced, both APT and the Company have seen
recent positive movements in Tanzania with respect to the general
business environment, growing demand for natural gas consumption
and the approaching completion of the government's review of
production sharing agreements. As a result of these encouraging
developments, it has been agreed to fast-track select Chikumbi-1
"pre-drill" activities including construction of an access road to
the Chikumbi-1 wellsite, construction of the drilling surface
location, ordering of select long lead items and to progress
permitting activities. This will enable the joint venture group to
commence drilling operations on Chikumbi-1 as soon as possible
following the granting of the extension of the Mtwara licence.
Furthermore, APT has taken proactive steps to hire key in-country
management personnel including the former Technical Director of PDO
in Oman, who has been appointed General Manager. APT has also
commenced the process of opening an operations office in Dar es
Salaam. Having key personnel available and a local office will
assist a smooth hand-over of operational responsibility from Aminex
to APT whilst the Farm-Out completes and will optimise operational
efficiencies.
Aminex will shortly receive the first payment from ARA Petroleum
LLC ("ARA") as an advance of up to $3 million against the cash
consideration of $5 million due on completion of the Ruvuma
Farm-Out.
The Company has applied for a 3-year extension to the Nyuni Area
PSA with a revised work programme. The extension and associated
work programme are subject to approval by the Tanzanian
authorities.
Aminex Chairman, John Bell, commented:
"The Company welcomes John into his role as CFO and gives the
warmest thanks to Max for his dedicated service over the years to
Aminex. We wish him the very best in his future endeavours. With
APT's support, Aminex is now well positioned to profit from an
extensive 2020 operational programme in Ruvuma and, with few
remaining barriers, we await the commencement of what we expect
will be a transformational programme of work for the Ntorya gas
project."
ARA CEO, Sultan Al-Ghaithi, commented:
"With the backing of The Zubair Corporation, ARA recognised, at
an early stage, the growth potential of Aminex through its exposure
to attractive, appraisal and development gas opportunities within
Tanzania. We remain strongly committed to both Aminex and Tanzania
and are excited to now be in a position where we can further
progress operations on Ruvuma, through the planned work programme
and the establishment of a Tanzanian operations office in Dar es
Salaam."
For further information:
Solo Oil plc
Alastair Ferguson, Chairman
Tom Reynolds, Chief Executive Officer
Douglas Rycroft, Chief Operating
Officer +44 (0) 20 7440 0642
Strand Hanson Limited
Nominated Adviser
James Spinney / Ritchie Balmer /
Rory Murphy +44 (0) 20 7409 3494
Gneiss Energy Limited +44 (0) 131 225 3783
Financial Adviser +44 (0) 20 7418 8900
Paul Weidman +44 (0) 20 7523 8000
Peel Hunt LLP +44 (0) 20 7466 5000
Richard Crichton / James Bavister solo@buchanan.uk.com
/ John Gilbert
Canaccord Genuity Limited
Henry Fitzgerald-O'Connor / Adam
James
Buchanan
Financial PR
Ben Romney / Chris Judd / Kelsey
Traynor /
James Husband
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation 596/2014.
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END
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