Solo Oil has reached agreement with Aminex plc to farmout a 12.5% net working interest in the Ruvuma Petroleum Sharing Agreement in Tanzania to Aminex in a back-to back agreement which will see Bowleven plc join the Ruvuma PSA joint venture with a 50% net working interest.
Solo will receive from Aminex a total consideration, in the form of a carried work program contribution and production bonus payments, of US$3.625 million comprising:
Net carry of US$2.5 million on Solo's Ruvuma PSA future work activity
A cash bonus of US$0.125 million on the completion of the Ntorya-1 well for production
A further bonus of US$1 million, to be settled in cash or shares, payable on achieving commercial production from the Ruvuma PSA