LONDON -- Aminex has been awarded a Production Sharing Agreement in Tanzania.
The new offshore PSA, known as Songo-Songo West, is adjacent to the western boundary of the producing Songo-Songo gas field and close to Aminex's recent gas discovery at Kiliwani North.
The new PSA is held 50% by Ndovu Resources Ltd., an Aminex wholly-owned subsidiary, and 50% by Funguo Petroleum Pty Ltd., a wholly-owned subsidiary of Key Petroleum of Australia. Key has been nominated
operator of the new area.
Songo-Songo West covers an area of 504 sq km (195 sq mi) and has comprehensive, existing seismic coverage. The full PSA term is for eleven years with an obligation to drill one firm well in the first three year period.
"Songo-Songo West is a logical extension of our existing interests in Tanzania and we have been pursuing it for some time," says Brian Hall, Aminex's chairman. "Based on extensive knowledge we have gained through exploring the region over several years we consider that the new PSA has high potential for the discovery of commercial quantities of hydrocarbons."