Edinburgh-based oil and gas explorer Bowleven has ditched plans to buy stakes in two Tanzania gas projects for up to $28 million (£19.6m).
The Africa-focused firm said in November that it had signed a conditional heads of terms with Aminex to buy a 25 per cent interest in the Kiliwani North Development Licence, which is soon to begin production, along with a 50 per cent interest in the “highly prospective” Ruvuma petroleum sharing agreement.
At the time, Bowleven chief executive Kevin Hart said the purchase would have given the company “the opportunity to participate in highly attractive production and material appraisal/exploration assets without compromising its robust balance sheet and strong capital discipline”.
However, in a brief statement today, the Aim-quoted firm said that it had decided not to pursue its interest in the proposed acquisition of the stakes “following the completion of due diligence”.
Aminex added: “In discussions during the due diligence process, a forward work programme could not be agreed which would be acceptable to Aminex, its lender, the Tanzanian authorities and Solo Oil.”
Solo Oil has a 25 per cent interest in the Ruvuma scheme – with Aminex holding the remaining 75 per cent – and a 6.175 per cent stake in Kiliwani North, of which Aminex owns 55.575 per cent.
Bowleven last month told investors that was making good progress with an onshore development in Cameroon, where an extended flow testing programme at its Bomono permit – completed as part of plans to supply gas for a power scheme in the region – showed support for plans for an initial supply of about five to six million standard cubic feet of gas per day.