Artumas Signs Memorandum of Understanding Leveraging on the Wentworth Acquisition
Jul. 7, 2010 (Hugin AS) --
Artumas Group, Inc. (OSE: AGI) today announced that the Company has signed a Memorandum of Understanding (MOU) with the Government of Tanzania and the Tanzanian Petroleum Development Corporation (NASDAQ:PETD) ("TPDC") to proceed with a pre-feasibility study into the monetization of the natural gas assets in Mnazi Bay with a focus on Ammonia/Urea/Methanol. The MOU is the first tangible result of Artumas' planned acquisition of Wentworth Resources.
The pre-feasibility study will assess the economic viability of a world-scale ammonia/urea/methanol project, as well as examining alternative monetization projects using the substantial gas resources in Mnazi Bay, Tanzania. The project, if proven viable, would be East Africa's first petrochemical project of this scale.
The MOU reflects Artumas' new strategic direction as a project developer resulting from its acquisition of Wentworth Resources Limited, a company whose principals have extensive experience in the development of large scale petrochemical projects.
"The successful execution of the MOU is a critical first step in developing what we believe is the beginning of a new era of gas monetisation in Tanzania. The project under study has the potential to significantly impact the value of otherwise "stranded" gas in the region and, if successful, would positively impact both the economy and the people of Tanzania," said Artumas' Executive Chairman, John Bentley.
"We want to take this opportunity to thank the government of Tanzania and the management of TPDC for their support and cooperation and their shared commitment to realise the true value of their gas resources," he added.
"The transaction with Artumas and the recently signed MOU will allow the restructured company to develop a gas monetization project where the interests of the producer, the developer and the government of Tanzania are aligned," said Wentworth Resources' Chairman and Chief Executive Officer, Bob McBean.
The MOU provides for a 12 month development period to define and assess the economic viability of a project. It further allows the project to be considered for development within the framework of the existing Production Sharing Agreement.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
Source: Thomson Reuters ONE
(July 7, 2010 - 10:55 PM EDT)
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