TIDMAEX
RNS Number : 5799R
Aminex PLC
02 March 2023
2 March 2023
Aminex plc
("Aminex" or "the Company")
Ruvuma Operations Update
Aminex PLC, the oil and gas exploration and production company
focused on Tanzania, announces the following operations update.
Aminex has been informed by ARA Petroleum Tanzania Limited ("APT"),
the Operator of the Ruvuma PSA, of a further delay to the spudding
of the Chikumbi-1 well ("CH-1"). Aminex is pleased to announce that
plans to accelerate gas production, as outlined in our announcement
of 1 November 2022, have been further developed with the Tanzanian
authorities, now targeting October 2023 for production of first
gas. This acceleration in the gas production schedule will result
in earlier gas revenues to the Company (Q4 of 2023), decoupling the
production of first gas from the spudding of the CH-1 well.
Several critical inter-related workstreams and ongoing
negotiations with the Tanzanian authorities have re-defined and
further de-risked the Project, advancing first gas production by
more than a year.
These inter-related workstreams are:
-- The results of the initial 3D seismic processing and
interpretation, to optimise the target location of the CH-1 well at
the Cretaceous reservoir level, will be available by mid-March.
Following a review by the Operator, the CH-1 well will no longer
target the lower Jurassic zone. The processing of the seismic data
is more than 80% complete.
-- A two-week well-testing programme on the Ntorya-2 well
("NT-2") has been designed and scheduled for late March 2023,
utilising a mobile testing unit, to provide additional information
required for the design of in-field processing facilities and the
export pipeline; in particular, an accurate measurement of the gas
composition.
-- A well-workover of the Ntorya-1 well ("NT-1"), to enable
rapid tie-in to the gas production facilities and bring the well
into early production requires the use of a drilling rig and will
run after the drilling of CH-1, which we expect later this
year.
-- Advanced negotiations regarding a Gas Sales Agreement ("GSA")
in respect of the Ntorya Gas Field are ongoing with the Tanzania
Petroleum Development Corporation ("TPDC"). It is expected that the
GSA will be agreed and finalised shortly.
-- Tanzanian Authorities have actively engaged in substantial
discussions with potential contractors for an export pipeline from
Ntorya to the Madimba Gas Plant to accommodate gas by October
2023.
-- APT has held significant discussions with potential contractors for the construction of field processing/gathering facilities.
-- A near final Field Development Plan ("FDP") has been
submitted and is now with TPDC for final comments, which, upon
approval, will lead to the issuance of a Development Licence for
the Ntorya Area.
-- A request for a further extension of the Ruvuma Licence has
been submitted, which is expected to be granted soon.
The successful conclusion to the above workstreams is expected
to have the following impact on the Project:
-- The decoupling of the spudding of CH-1 from first gas
production and receipt of gas revenues. APT continues discussions
with rig contractors and is confident of rig availability. We will
provide a further announcement on drilling rig arrangements in due
course.
-- Accelerated production from Ntorya, strongly supported by the
Tanzanian authorities, and which has now been brought forward twice
from the original schedule.
-- The FDP and resulting Development Licence will be granted up
to 18 months ahead of the original schedule with significant gas
revenues to Aminex arising from production through NT-1, NT-2 and
CH-1, once drilled and completed.
-- The full 3D seismic results will be available by mid-year and
will permit a full revision of gas reserve and resource potential
for the field.
Aminex, with a 25% non-operated interest, is carried throughout
the ongoing work programme to a maximum gross capital expenditure
of $140 million ($35 million net to Aminex). The carry is expected
to see the Company through to the commencement of commercial gas
production from the Ntorya gas-field at zero cost to the
Company.
Charles Santos, Executive Chairman of Aminex commented :
"Today's update demonstrates APT's capacity, not only to run
multiple critical negotiations and a significantly broader
technical engagement but also its high level of confidence in the
Project, fully supported by the Tanzanian authorities. Accelerated
gas production, now targeted for October 2023, shifts the narrative
of Ruvuma; it further de-risks the Project from a dependence on the
spudding and outcome of CH-1 to a more anchored and broader
development effort as we move toward early gas production. Such
de-risking continues to honour the upside potential that will come
from the drilling of CH-1, the 3D seismic interpretation and the
full development of the field. As mentioned in our previous
announcement, these developments are potential game-changers for
all stakeholders in the Ruvuma development. Moreover, locking in
the development licence and halving the timeline for gas production
and cash flow to the Company more than offsets the delay in
spudding the CH-1 well. We thank APT and the Tanzanian authorities
for their significant efforts in bringing the Project to fruition
and look forward to providing a more detailed update to the market
on completion of the current workstreams."
For further information:
Aminex PLC +44 203 355 9909
Charles Santos, Executive Chairman
Davy +353 1 679 6363
Brian Garrahy
Shard Capital +44 20 7186 9952
Damon Heath
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