Solo Oil PLC (AIM:SOLO) and Aminex PLC have officially signed Asset Sale Agreement for Solo to buy a 6.5% interest in the Kiliwani North Development License in Tanzania’s developing oil and gas sector.
Under the terms of the deal, Solo will have the option to purchase an additional 6.5% interest with the same terms within 30 days of receiving approval of a Gas Sales Agreement being by the Tanzanian authorities.
Under the terms of the deal Solo will pay USD 3.5 million for the first 6.5% interest in the license and, according to a statement released by Aminex the total 13% stake would be purchased for USD 7 million.
“The only conditions precedent remaining are the formal approval by the Tanzanian authorities, which both companies expect to receive shortly, and the formal signing of the asset assignment agreement by all partners,” read the Aminex statement.
The proposed license sale includes the Kiliwani North 1 well, which both parties project has the capacity to produce nearly 20 million cubic feet per day.
Solo and Aminex have already partnered in Tanzania with the 2012 Ruvuma gas production sharing contract in Tanzania, with shares of 25% and 75%.