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Aminex to progress Ruvuma once farm-out completes

Zubair Corporation will pay US$5mln in two tranches to develop Ntorya
oil rig
OVERVIEW: AEX The Big Picture
Ruvuma is both onshore Tanzania

 

  • Aminex is an oil and gas explorer focused primarily on Tanzania

  • Farm-out of Ruvuma to Oman’s Zubair Corporation approved by shareholders

  • Longstop date to complete the deal 31 July

  • Remedial work at Kiliwani North to be followed by more seismic acquisition

  • KIliwani South to be tested as well

  • Company to move from Premium list to Standard

 

 

What it owns

 

Ruvuma PSA (Tanzania) gas: 75% working interest through subsidiary Ndovu Resources that will fall to 25% once Zubair deal completes

Likonde-1: operator Tullow, Aminex 35% (drilled 2009)

Ntorya – 1: operator Aminex (drilled 2012)

Ntroya – 2: operator Aminex (drilled 2017)

Chikumbi-1: operator Aminex (tbc)

 

Kiliwani North (Tanzania) gas: Aminex owns 63.83% through Ndovu

Kiliwani – 1: operator Aminex (drilled 2008)

Kiliwani North – 1: operator Aminex (drilled 2008)

Kiliwani South

 

Nyuni PSA : Offshore licence surrounding Kiliwani. Aminex owns 100% through Nduvo

Nyuni 1-1A operator Aminex (drilled 2004)

Nyuni -2: operator Aminex (drilled 2011)

 

How is it doing

Independent audit ascribed Ntorya 2C Contingent resource of 763Bcf (billion cubic feet)  Pmean GIIP ( gas in place) increased to 1.87 Tcf (trillion cubic feet)

Kiliwani North-1 well ascribed 2P reserves of 1.94 BCF and 30.8 BCF Pmean GIIP while Kiliwani South identified as potential lead with 57 BCF Pmean GIIP.

Remedial work plan confirmed for Kiliwani North-1 to stimulate production

Ongoing well planning for Chikumbi-1 well, which will look to appraise the Ntorya gas discovery and potentially be  drilled deeper into the prospective Jurassic formation.

Aminex has fully written-down its Nyuni exploration assets, which accounted for the bulk of the 2018 net loss US$48.5mln.

Cash at end December was US$1.9mln, which has been boosted by a further US$2.4mln through share issue for Kiliwani seismic programme.

 

What the boss says: Jay Bhattarcherjee

"The farm-out agreement signed with The Zubair Corporation is an advantageous way to accelerate development and generate material cashflow from Ntorya.  Aminex has a bright future, having signed a farm-out agreement with The Zubair Corporation over the Ruvuma acreage with a fully-funded carry to material cashflow."

 

VIdeo 

 

Inflection points

  • Aminex has finalised the anticipated programme for the planned Chikumbi-1 and signed a rig sharing agreement with Heritage Oil, for each company to reduce mobilization and demobilization costs.
  • Zubair Corpration to pay US$5mln, in two tranches, to develop the Ntorya asset, which hosts a ‘contingent’ 763bn cubic feet of gas.
  • Aminex has also put together plans for a 3D seismic programme, which will cover some 220 sq km over the Ntorya development area.
  • Chikumbi-1 will be located about 4 kilometres from the successful Ntorya-2 well, drilled in 2017, and drilled down to a depth of 3,485 metres.
  • If it proves successful, it is expected to be completed as a future producer in the Ntorya development.
  • The well has two objectives – to expand and delineate the Ntorya project, and, to test a deeper, Late Jurassic exploration target.
  • Zubair will carry up to US$35mln in costs regarding the development of Aminex’s remaining 25% interest.
  • Zubair will also carry out a minimum work programme including the drilling, completion, and testing of the Chikumbi-1 well; acquiring, processing and interpreting 3D seismic data over a minimum of 200 sq km within the Ntorya project area; and establish an early production system to achieve accelerated first gas development at Ntorya to a minimum gross rate of 40mln cubic feet of gas per day (MMcf/d), which is around 6,700 barrels equivalent.
  • At Kiliwani North, Aminex is undertaking remedial work and intends to take the opportunity to perforate a deeper and previously untested, potentially gas-bearing section.

 

Blue Sky

Aminex has also identified prospective areas within the Kiliwani North and Nyuni Area concessions which will be the subject of new seismic data acquisition, with plans to acquire some 275 kilometres of 3D seismic.

The aim is to identify undrained compartments of the Kiliwani North structure and to high-grade the Kiliwani South prospect to ‘drill-ready’ status.

Kiliwani South has previously been estimated to host a possible 57bn cubic feet of in-place gas.

At 1p, Aminex is valued at £37mln.

 

 

 

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