Aminex PLC shares jumped on Wednesday, after it said it has inked a gas sales agreement for the sale of gas from the Ntorya location.

Shares in Aminex jumped 12% to 0.93 pence each in London on Wednesday afternoon.

The oil and gas investment company focused on Tanzania said a gas sales agreement for the sale of gas from the Ntorya location has been signed by its subsidiary Ndovu Resources Ltd, together with the operator, ARA Petroleum Tanzania Ltd and the Tanzania Petroleum Development Corp.

Aminex said it now anticipates early issue of the development licence which will allow the award of a rig contract and enable the drilling of Chikumbi-1 and the workover of Ntorya-1. The testing of Ntorya-2 is now scheduled for mid-year using an in-country mobile test unit.

It added that despite the completion of an environmental impact assessment on the proposed pipeline to the Madimba gas plant and payment of all compensation to relevant landowners, there has been a delay in the construction of the pipeline. The Tanzanian authorities now expect the pipeline to be completed by the end of 2024. ARA Petroleum Tanzania is working closely with the Tanzania Petroleum Development to expedite construction as soon as possible.

Executive Chair Charles Santos said: ‘The signing of the gas sales agreement with the TPDC marks a significant milestone for the company and the development of the Ntorya field. We thank APT, as operator, and the Tanzanian authorities for their efforts in bringing the execution of the GSA to a close. At the signing today, the Tanzanian authorities expressed the importance of energy security for Tanzania and its people and the development of Ntorya is crucial to the provision of much-needed natural gas. The authorities also indicated that the development licence will be received very soon.’

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