Edenville Energy’s relinquishing of three licences in Tanzania will allow the company to concentrate its resources on the Rukwa coal-to-power project in the south-west of the country it believes.
Edenville said that a requirement to continuously develop once an exploration licence has been granted meant that it was better to relinquish its licences to focus on its flagship Rukwa project.
The relinquished licenses – PL5790, PL5659 and PL6174 – were originally acquired by the company in 2010. Edenville said all three have shown little likelihood of viable hydrocarbon production.
Edenville said it will save £250,000 over the next 12 months.
The move will lead to an impairment charge of around GBP3.6 million being booked in the current financial year that will run until the end of 2016.
“All available manpower and financial resources are now being concentrated at the Rukwa project site to enable the company’s Rukwa coal-to-power project to move forward,” the company said.
The first road building and mining equipment is expected to arrive on site this week.
