The deal provides for Hardman to earn a 50% interest in the Ruvuma production sharing agreement (PSA) in exchange for funding 100% of the costs of an onshore 2D seismic survey, at an estimated cost of $US3 million. The interests in the Ruvuma PSA will be: Ndovu 50% and Hardman 50%.

Hardman will provide technical support during the seismic acquisition program, and upon completion of the earning commitment, it will be appointed operator of the PSA, according to managing director Simon Potter.

“This entry into Tanzania allows us access to a new and exciting frontier with significant potential,” Potter said.

“We plan to leverage our experience as an operator of wells and onshore and offshore seismic acquired in our successful Ugandan project. This gives us an opportunity to build a new focus area in East Africa.”

Aminex PLC is an upstream oil and gas company listed on the London and Irish Stock Exchanges, which is currently operating exploration licences in Tanzania, Madagascar, North Korea, and Egypt and production licenses in the US.

The farm-out agreement and subsequent change of operatorship is subject to formal Tanzanian government approval.

The Ruvuma PSA is about 500 kilometres south of Dar es Salaam, along the Mozambique border and comprises the Mtwara and Lindi licences. These licences cover a total area of 12,360 square kilometres over the onshore and adjacent nearshore, Tanzanian portion of the Ruvuma Basin.

The area is adjacent to the Mnazi Bay gas field, discovered in the 1980s and currently under development. The area was last explored in the 1980s and prior to the recent activity less than 1,400 kilometres of 2D seismic had been recorded.

According to Hardman, numerous leads have been identified by previous operators from this data, many with potential in excess of 100 million barrels. Initial targets will be Tertiary and Cretaceous reservoirs expected at depths of 1,000 to 3,000 metres. Oil seeps are known in the area.