Canada’s Antrim sells up in Tanzania

Tanzania-Schedules-Offshore-Licencing-Round-for-September10 July 2013, News Wires – Canadian junior Antrim Energy has given up on an East African play after selling its interest options to a mystery buyer for a cash sum.

The explorer has gotten rid of the two options it had to acquire up to a combined 30% interest in the production sharing agreement for the Pemba-Zanzibar exploration licence offshore and onshore Tanzania.

Antrim said it has bagged $7.5 million in cash in the deal but did not reveal the buyer.

There are no fixed assets associated with the options which were gained through two agreements in December 2010.

Antrim said at that time it had signed an agreement with Ras Al Khaimah Gas (RAK Gas) and NOR Energy which saw it replace its previous right to be carried through the pre-drilling phase with a 20% carried interest through pre-drilling and an extra 10% right to take part in the PSA to be exercised up to 180 days following receipt of the initial drilling results.
The carried interests up to 30% were to be repaid from future production.

Antrim’s previous option was acquired in 2006 as part of a sale of several assets to NOR. It had originally made a move on Pemba-Zanzibar in 1997.

Antrim still says on its website about the licence: “The licence is in a highly productive region that has recently seen significant exploration activity.”

The company will use the case to boost its capital expenditure reserves, it said.

– Upstream

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