Aminex Summary
Why were we waiting? The wait is almost over!
Remember this... "Fire in the Hole" February 2017
It was a long time ago and the sp rose to the heady heights of almost 8p before a two year spell of pretty much nothingness that has left many holders bewildered and trapped at higher values as the shorters and day trading bears dominated the bulletin boards!
Why hasn't anything been happening? What allowed these parasites to gain such a foothold and do such damage to the share value?
The Tanzanian Government finally said "No More" to being ripped off by western countries, who over the years had allegedly bribed and corrupted some of the countries officials into handing out contracts, licences & basically looking the other way over a whole range of industries initially brought to light in the gold fields!
High ranking officials have since been questioned and removed from posts across many industries and the Oil & Gas industry PSAs (Production Share Agreements) have all been scrutinised and are now finally about to be completed.
The effect of the delay killed off any chance of what was to be a back to back drill later that year which was to seek the much bigger prize then known as NT3 (Now CH-1) with a potential for oil at the lower Jurassic level.
Everyone was quite rightly excited by the find at NT2 and what was an initial search for around 400+bcf turned into a find of 1.87TCF with substantial oil shows however with no end to the delay in sight and the company unable to provide information to inform holders of the reason for delay, (I understand due to the government holding veto over RNS content - but I also suspect a little fear about showing up the host country in a bad light during a period of uncertainty) The parasites had clear run and were clearly obvious by their words and actions. Glorying and mocking at anyone who they thought had lost money with their investment. I christened them "Granny Muggers" back then and I stand by it, their actions at times have been beyond contempt.
Equally as guilty as these unscrupulous people were the operators of the bulleting boards who gained their commissions from their behaviour in frightening people into selling. While many good people (Long Term Investors), got banned or removed for questioning or taking these characters to task, these people were allowed to be abusive towards anyone that challenged them and the same characters still patrol the boards daily. I personally went through 18 months of abuse and even now after three months not even posting on the boards those same characters still seek to dig me out, pathetic keyboard warriors that they are!
Time to be Positive
As said the PSA reviews are reaching conclusion, as can widely be read about in the Tanzanian press. During this weeks Tanzanian Oil conference Nytora has been singled out as one of the four most important fields in the country where the Government urgently wish further exploration to take place.
All this leads to a very positive outlook as Aminex themselves recently announced in an RNS...
Ruvuma Farm-Out Update and Acceleration of Drilling Operations
Aminex is pleased to announce that all the conditions precedent within the control of Aminex and ARA Petroleum LLC ("ARA") detailed in the Ruvuma farm-out agreement ("Farm-Out") have been satisfied. The Company and ARA have seen positive movements in Tanzania with the government actively resolving several long-standing issues with other operators in country. These positive movements provide confidence to the Company and ARA who are now prepared to further advance certain pre-drilling operations for the Chikumbi-1 well. The Company and ARA will advance works so that drilling of the well can commence as soon as practicable following the satisfaction of the remaining conditions precedent, which are the granting of the Mtwara licence extension and government approval for the transfer of interest and operatorship. Furthermore, Aminex is pleased to announce:
· Aminex and ARA have signed a binding heads of terms, whereby ARA has agreed to provide a $3 million advance in instalments to the Company, ahead of Completion of the Farm-Out ("Advance"), which provides the Company with financial flexibility pending Completion. The parties will agree and sign a fully termed agreement as soon as possible;
· The Advance will be offset against the first tranche of the Cash Consideration payable to Aminex on Completion of the Farm-out;
· The second tranche of the Cash Consideration of $2 million, which was initially due to the Company 180 days after Completion, will now be payable to the Company upon
Completion;
· The Long Stop Date for Completion of the Farm-Out has been extended to 30 June 2020. While the Company and ARA do not expect to require this extended period to satisfy the remaining conditions of the Farm-Out, this demonstrates both parties' commitment to the transaction;
· If Completion has not occurred by 30 June 2020, the Advance will convert to an interest-bearing secured loan, repayable by 30 June 2021.
Aminex Chairman John Bell commented:
"ARA is suitably encouraged by the ongoing discussions with the Tanzanian authorities to accelerate the planning and preparation for the spud of Chikumbi-1. Furthermore, these advanced payments demonstrate a commitment to this excellent asset, which when on production will play an important role in meeting domestic demand for gas from the people and businesses of Tanzania and a possible international market through export arrangements with neighbouring countries. Alongside our partner ARA, we continue to work towards completion of the Ruvuma Farm-Out, and are proactively engaged with the Tanzanian authorities to obtain the outstanding approvals and licence extension."
ARA Petroleum LLC CEO Sultan Al-Ghaithi commented:
"We are encouraged by the ongoing discussions with the Tanzanian authorities to be able to accelerate the planning for the early spud of the Chikumbi-1 well, through the tendering of services, ordering of long lead items and securing a contract for a drilling rig. We are also happy to further demonstrate our commitment to the Ruvuma Farm-Out by bringing forward certain payments due to Aminex under the terms of the Farm-Out."
It does seem at last that we finally have a possibility in sight to go searching for that black gold and if the licence does come this month, then I feel there is every reason to be optimistic about the possibility of a pre Christmas spud date.
Meanwhile we have Tom Mackay as CEO and Tom Bell as Chairmen.
I wish all you fellow investors good luck, I think our time is about to come