Edinburgh-based oil and gas explorer Bowleven is set to acquire stakes in two Tanzania gas projects for up to $28 million (£18.3m).
The Africa-focused group said the proposed deal was in line with its strategy of concentrating on opportunities in Africa that “have the potential to create material shareholder value, whilst maintaining a robust balance sheet and strong capital discipline”.
It has 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.
Bowleven chief executive Kevin Hart said: “The decision to enter into this heads of terms with Aminex follows the extensive screening of a large number of opportunities in Africa.
“Consistent with the group’s strategy, the deal affords Bowleven the opportunity to participate in highly attractive production and material appraisal/exploration assets without compromising its robust balance sheet and strong capital discipline.”
As at 31 October, the Aim-quoted group had a cash balance of about $120m and no debt.