In a statement today, Key said the farm-out would provide the JV with a “substantial partner that will bring considerable experience and technical expertise to the project”.
Under the farm-out deal, RAK Gas will pay 37.5% of the cost to drill two wells in the Nyuni/East Songo Songo production-sharing contract to earn its 25% interest in the PSC.
Operator Aminex said the JV would start drilling its first well in the licence as soon as the Caroil-6 rig had completed a nearby well.
“The Nyuni PSA partners have contracted the Caroil-6 rig to drill two back-to-back wells over the licence this year and plans are well advanced,” the company said in a statement.
The Nyuni block is directly adjacent to the producing Songo Songo gas field and near the recently announced Mafia Basin, Mkuranga-1 gas discovery well.
Key Petroleum, which listed on the Australian bourse a month ago, will have a 20% interest in the PSC by paying 30% of the cost to drill the two wells.
Following the farm-outs, interests in the Nyuni PSC will be Aminex (operator – 39%), RAK Gas (25%), Key Petroleum (20%), East Africa Exploration (10%) and Bounty Oil & Gas (6%).
