As per the terms of the farm-in agreement, Aminex will fund a 20% share in the dry hole cost of the forthcoming Nyuni-2 exploration well in Tanzania in return for assignment to the company of a 15% interest.
The farm-out company is Key Petroleum, which is refocusing its activities to onshore UK production and onshore North Perth Basin exploration in Australia.
Once the farm-out conditions have been met, Key Petroleum will become a 5% partner and responsible for 5% of ongoing costs, including any testing and completion costs of the Nyuni-2 well.
The additional 15% being acquired by Aminex includes 15% of the tested Kiliwani North gas discovery and of the logged but not tested gas discovery in Albian-Aptian sands in the Nyuni-1 well, drilled in 2004.
Nyuni-2 is due to be spudded in April and a rig contract is in the final stages of negotiations.
Following the completion of the farm-in agreement, Key’s stake in the Nyuni PSA will be reduced to 5%, with RAK Gas Commission continuing to hold a 25% stake and Bounty Oil holding the remaining 5% interest.
