A corporate and operational update from AMER today in which the company announces the acquisition of the outstanding WI in the Mecaya contract bringing the company to 100% and operator. A much more sensible set of obligations mean that AMER no longer have random payments but more aligned with any success that they achieve. Not only that but getting to 100% makes it a much more material interest and just what they should be doing at the moment.
Meanwhile, the operator at Indico-1 say that the well is proceeding satisfactorily to plan and budget. Currently at 6,500’ heading for TD of 10,780’. Finally, the Chiritza station has now been commissioned on time and budget giving the company capacity right to 9,000 b/d through the OBA pipeline. Whilst the company is unlikely to have this many barrels of their own crude yet I t is possible that they may ship third party oil if deemed sufficiently profitable. All in all good news from Amerisur despite the sector being hit hard by recent oil price weakness.
Aminex has announced that the longstop date for the farm-out of Ruvuma has been extended to 31 March 2019 in order to complete the conditions precedent. CEO Jay Bhattacherjee commented that they are making good progress and when completed will give AEX a full carry to significant production and free cash flows with no further recourse to funding.
I recently met with Jay and whilst the time taken to complete the intense paperwork has been irritating the prize is still very much in sight. I know that he understands the pressure that this brings to investors but in this part of the world these things take time and should be taken into account.
On the above I’m sure that Solo shareholders will also concur that concluding the farm-out will also be advantageous to them and therefore should welcome the news.
On another subject I am very much looking forward to attending the Solo investor evening tomorrow night, details on the website.