Bowleven Farmout in Tanzania’s Ruvuma PSA Terminated

Ruvuma PSA operator Aminex has advised that the proposed disposal of a 25% interest in the Kiliwani North Development Licence and a 50% interest in the Ruvuma PSA to Bowleven PLC, announced to shareholders on 19 November 2015, will not proceed.

This follows a failure by the involved parties (Aminex, its lender, the Tanzanian authorities and Solo Oil plc) to agree on a forward work programme.

“In discussions during the due diligence process, a forward work programme could not be agreed which would be acceptable to Aminex, its lender, the Tanzanian authorities and Solo Oil plc,” says Aminex CEO Jay Bhattacherjee.

As a consequence, the contingent agreement between Solo and Aminex for a transfer of a 12.5% in the Ruvuma PSA interest is no longer applicable and the partners will maintain their existing interests.

• Aminex 55.575% (operator) interest in the Kiliwani North Development Licence, for which LR Senergy has ascribed 28 BCF contingent (2C) resources (gross) and which is about to come on-stream following the signing of a Gas Sales Agreement in January; and
• 75% (operator) interest in the Ruvuma PSA, where it is making progress towards the recompletion of the Ntorya 1 discovery well, and the drilling of the Ntorya 2 appraisal well.

Bowlevenon its part said it has decided not to pursue its interest in the proposed acquisition from Aminex PLC of a 25% interest in the Kiliwani North Development Licence and a 50% interest in the Ruvuma PSA, in Tanzania, following the completion of due diligence.

Solo’s interest in the Ruvuma PSA will therefore remain at 25%.