Tanzania

Friday, May 22 2009 by
28

NO TA ON THIS THREAD PLEASE

Aminex has significant interests in Tanzania, including Ruvuma which will be drilled later this year.

Having started this thread some months ago, I have now added doverbeach, SW10chap, tournesol and marben100 as collaborators on the thread and intend that any moderation (or proper header writing/amending !) that may be required should be done by them and not me.

I hope that the outcome of this thread proves a happy one for all concerned.

ee


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Aminex PLC is engaged in the exploration for, and the development and production of oil and gas reserves. Its principal area of activities includes the United States, East Africa, North Africa and North Korea. Its segments include Producing Oil and Gas Properties, Exploration Activities and Oilfield Services and Supplies. The Company's licenses in Tanzania include Nyuni PSA, Kiliwani North and Ruvuma PSA. During the year ended December 31, 2010, it drilled three wells, one in Tanzania and two in the United States. As of December 31, 2010, the Company held leases at Shoats Creek covering approximately 2,100 acres. Aminex Oilfield Services & Supply Company (AMOSSCO), its wholly owned subsidiary, provides logistics services to oil industry and sources oilfield equipment and consumables to international oil companies. In October 2013, Aminex Plc announced the sale of its producing gas wells at the South Weslaco Field, Hidalgo County, Texas to Northcote Energy PLC. more »

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0.4
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39.3



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608 Posts on this Thread show/hide all

djpreston 13th Sep '11 489 of 608
14

Just to clear up any confusion out there regarding what Key and we have following the RNS today, I've been in touch with Brian and have his permission to quote the following:

They still have their carry of 5% in N2 and they still have 5% of the Kiliwani N dev licence. But they are gone for any more exploration in Nyuni.

Fund Management: European Wealth
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dbfromgb 14th Sep '11 490 of 608
15

A couple of observations regarding recent events.

I have seen little comment on the statement in the recent RNS

"Aminex considers that the new acreage included in the Nyuni Area PSA will provide greater scope for establishing a new play fairway on the continental shelf which could share similarities to some of the recent deep water drilling successes".

I am no geologist, and wonder whether others could comment on this? On the map (see previous presentations) there does appear to be a line of prospetivity on the Nyuni and Songo Songo licences running near vertically from bottom left to top right, and the addition of blocks to the North would be broadly on this line. Is this telling us something?

Secondly I continue to wonder whether there is a jigsaw being put together here, which is difficult for us to see now but will become clear when all the bits fit into place. I am waiting for confirmation/details of the new Nyuni PSA, KN1 pipeline access, a new pipeline announcement, outcome of the current well, and explanation of what is going to happen to the Caroil 6 in October, as just five remaining pieces, that will join the recent announcements of reorganisations of ownership at Ruvuma and Nyuni. Plus of course some explanation of the comments regarding the play fairway referred to above.

I am feeling quietly confident that management are going to take the market by surprise - but key to success is a positive outcome to the Nyuni 2 drill.

The day job prevents posting more often but I do appreciate the posts of others which I follow with interest.

Regards

dbfromgb




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blackgold00 14th Sep '11 491 of 608

hi djpreston,

"To clear up any confusion, I've been in touch and have Brian's permission to post this:

They still have their carry of 5% in N2 and they still have 5% of the Kiliwani N dev licence. But they are gone for any more exploration in Nyuni."

So I wonder is this now a different agreement to the original one? do they now get a free carry right through to the testing and the completion of the well? as the original agreement only gave them a free carry of the dry hole costs.

http://www.advfn.com/p.php?pid=nmona&article=46300820&symbol=LSE%3AAEX

"Under the terms of the farm-in, Aminex will fund a 20% share in the dry hole cost of the forthcoming Nyuni-2 exploration well in Tanzania in return for assignment to the Company of a 15% interest. The farm-out party is Key Petroleum Ltd. ('Key') which is refocusing its activities to onshore United Kingdom production and onshore North Perth Basin exploration in Australia. Once the farm-out conditions have been met, Key will become a 5% partner and responsible for 5% of ongoing costs, including any testing and completion costs of the Nyuni-2 well. The additional 15% being acquired by Aminex includes 15% of the tested Kiliwani North gas discovery and of the logged but not tested gas discovery in Albian-Aptian sands in the Nyuni-1 well, drilled in 2004."

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djpreston 14th Sep '11 492 of 608
2

In reply to blackgold00, post #491

Far as Im aware - the agreement is still to dry hole costs

Fund Management: European Wealth
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D1G3Y 14th Sep '11 493 of 608
1

RAK Gas in talks to build new Tanzanian gas pipeline, with decision due in the next 3 to 4 months.

http://www.tradearabia.com/news/ogn_192773.html

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marben100 15th Sep '11 494 of 608
2

Looks like one of my other investments, Polo Resources (LON:POL) , is taking an interest in Tanzania offshore: http://www.investegate.co.uk/Article.aspx?id=201109151051273001O

 

Polo Resources Limited (AIM and TSX: POL) is today posting a circular to shareholders in relation to a meeting of the Company's shareholders ("Meeting") to consider and if thought fit approve a further investment of up to US$20 million in Signet Petroleum Ltd. ("Signet")....

 

...Polo's previous investments in Signet

On 6 July 2011, the Company subscribed for 666,666 Signet Shares for a total consideration of US$2,000,000 (at a price of US$3.00 per Signet Share).  On 22 August 2011, the Company subscribed for a further 1,428,571 Signet Shares for a total consideration of US$5,000,000 (at a price of US$3.50 per Signet Share).

Signet currently has 29,995,237 issued shares of which the Company holds 2,095,237 Signet Shares, comprising approximately 7.0 per cent. of Signet's issued share capital and 5.8 per cent. of the fully diluted share capital of Signet.

 

Proposed terms of the Signet Investment

Under the terms of the Option, the Company has been granted a 90-day call option over not less than 4,285,714 new Signet Shares and, subject to the written consent of Signet, up to 5,714,285 new Signet Shares (the "Signet Option Shares"). The subscription price for each new Signet Share is US$3.50 for an aggregate consideration for the Signet Option Shares of between US$15 million and US$20 million.  The Option will lapse on 20 November 2011...

 

...Tanzania

 Signet holds an 80 per cent. shareholding interest in Hydrotanz Ltd ("Hydrotanz"), a company incorporated in Tanzania. Hydrotanz entered into a production sharing agreement with the United Republic of Tanzania and the Tanzania Petroleum Development Corporation pertaining to the North Mnazi Bay on 29 May 2008.  North Mnazi Bay is located offshore and covers an area of 252.27 square kilometres.  Hydrotanz has recently completed the acquisition of 375 km of 2D seismic and these results will be interpreted with existing data to design a work programme for the block.

A joint venture between BG International Limited and Ophir Energy plc has interests in Blocks 1, 3 and 4 offshore southern Tanzania.  These blocks cover 20,853 square kilometres in the Ruvuma and Mafia Deep Basins area, located in water depths ranging from approximately 100 metres to 3,000 metres.  The results of the recent drilling activity in Blocks 1 and 4 have confirmed the presence of both Tertiary and Cretaceous reservoir systems.  All three of the recent wells drilled in Blocks 1 and 4 have encountered gas within Tertiary reservoirs.  According to a report prepared by RPS Energy Limited in July 2011, Blocks 1, 3 and 4 had 2,454 bscf of gross mean contingent resources and 5,643 bscf of gross mean risked prospective resources. Block 1 is located to the north adjacent to the North Mnazi Bay block...

 

Interest in Tanzania definitely seems to be hotting up. Must admit, I didn't know that BG's finds only totalled 2.5tcf so far, so that could make 1tcf+ at Nyuni somewhat more material to them. Fingers crossed that a good discovery by Aminex will receive rather more interest than KN-1 did.

Cheers,

Mark

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fuiseog 15th Sep '11 495 of 608

Mellon & Dattel won't let POL hang around sitting on the proceeds of Caledon (CDN), will they.

Signets territories have some very reputable cash rich next-door neighbours:-
Benin - Petrobas
Namibia - Tullow
Tanzania - BG
It's good to see they're keeping the right company. I wonder could the neighbours be interested in farm-ins, or even a little takeover?

The complexity of ownerships in relation to Polos investments continues with this one.

"In aggregate, Mr Stephen Dattels, Mr Neil Herbert and Mr Ian Burns (the "Non-Independent Directors") are indirectly interested in 5,400,000 Signet Shares, and Mr Dattels is indirectly interested in an option over a further 2,000,000 new Signet Shares exercisable at a price of US$1.25 per share. As at the date of this announcement the total shareholding of the Directors and other connected persons in Signet's share capital is approximately 18.2 per cent. of the total issued Signet Shares, and approximately 20.6 per cent. of Signet Shares on a fully diluted basis. Accordingly the Non-Independent Directors are interested in the business relating to exercise of the Option.In addition, Mr Stephen Dattels and Mr Ian Burns are also both directors of Signet. While the exercise of the Option, does not constitute a related party transaction under AIM Rule 13, in accordance with principles of good corporate governance, the Non-Independent Directors have excused themselves from voting on this matter, and the independent Directors of the Company, namely Mr Guy Elliott, Mr Jim Mellon, Mr Bryan Smith and Mr Ian Stalker (together the "Independent Directors") have unanimously resolved to seek Shareholder consent prior to their final decision as to whether to exercise the Option."

So what do you think Mark, is Signet a candidate for listing?

fuiseog (POL holder)

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marben100 15th Sep '11 496 of 608
1

In reply to fuiseog, post #495

So as not to go O/T on this thread, I have replied here: http://www.stockopedia.com/content/polo-beyond-extract-31756/?comment=151#151

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D1G3Y 16th Sep '11 497 of 608
4

Going to sidetrack at 3000m due to debris stuck down hole

http://www.advfn.com/p.php?pid=nmona&article=49197514&symbol=L%5EAEX

also order placed for 6" pipe for KN-1 tie back.


Another example of SW10 law in action.

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peterg 16th Sep '11 498 of 608

After successfully mastering the most difficult of the anticipated drilling zones in the well .... A decision has now been taken to pull back to approximately 3,000 metres, above the area of blockage, and to side-track the well, by-passing the obstruction.

What I'm not clear about is where is the start of the most difficult of the anticipated drilling zones?

Is it above or below 3000m - while they have to drill through it again?

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blackgold00 16th Sep '11 499 of 608
3

Hi peterg, as I understand it, it is the zones from the depth to where the casing was run, at approx 3000mt, through the Aptian/Albian zone (the secondary target), to the top of /or into the Neocomian zone, (the primary target.)

They were running wirer line logs before they had finished drilling to TD. so it looks like they could had found something of interest in the Aptian/Albian zone and wanted to run wireline logging, before they entered the primary target the Neocomian zone and on to TD, but then it went pair shaped.

And yes they will have to go through those zones again.

there is a diagram on the second page that might help

http://www.asx.com.au/asxpdf/20110527/pdf/41ywvtzj7mvg7r.pdf

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flyinghorse 16th Sep '11 500 of 608
1

Dont really understand this as the real issue for sidetracking.
Logging standoffs are designed to come off,thus freeing a tool that may contain Radioactive sources/leaving the whole tool stuck.
They are also designed to be drillable. They are soft rubber & jubille clips with a metal band.

FH

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Proselenes 18th Sep '11 502 of 608

Looks like sales from Nyuni-1 (and hopefully Nyuni-2) will commence December 2012.

And of course Mtwara is also right where the Ntorya-1 well is, so even if Ntorya-1 is gas and not oil, its possible commercial with this pipeline !


http://www.ippmedia.com/frontend/index.php?l=33463

Battle for $1bn deal
BY FLORIAN KAIJAGE

18th September 2011

Why Minister Ngeleja ditched Songas

Alarmed by the recent cartel by fuel dealers and a monopoly in gas business, the government has finally decided to construct the $1.01 billion gas pipeline from Mtwara to Dar es Salaam, causing panic in the boardrooms of Pan African Energy and Songas companies.

The lucrative deal that involves the construction of processing plants at a cost of $300 million at Mnazi Bay, will be financed by a loan from the Chinese government, The Guardian on Sunday has learnt.

Completion of the project is expected to lower the gas delivery price by up to 200 percent as it would enable more suppliers including Ndovu Resources to compet...............

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muckshifter 18th Sep '11 503 of 608
2

In reply to Proselenes, post #502

Don't think so Proselenes, I think what they mean by "project implementation" is that they hope to start the construction phase at the end of next year, and hope is a key word in that sentence.

We'll see in due course, and I for one would be amazed if the construction started end of next year. Assuming say 75% of the project cost is construction, ie $750M, that is going to take a couple of years to build and commission, I would think.
Regards.

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Surandy 28th Sep '11 504 of 608

Argh!!!

The waiting for meaningful news is driving me insane!

When will we know what is happening.

The latest from Tz is encouraging for the Kiliwani North Development Licence, Nyuni #2 if successful and for any more gas found in the Nyuni Area PSA.

To accelerate the delivery of increased gas volumes to Dar es Salaam, the Government of Tanzania has indicated that it will install a new coastal gas pipeline system financed by funds from the Chinese Exim Bank. The first phase of this project is expected to be the looping of the existing 200 kilometer onshore pipeline from Songo Songo that will enable 200 MMcfd to be transported to several new power plants that are currently planned for the Dar es Salaam area. These Government infrastructure plans will provide long term energy security for Tanzania and potentially East Africa.

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djpreston 28th Sep '11 505 of 608
1

In reply to Surandy, post #504

When youve held as long as some of us, Surandy, youll get used to it. So, next week???

Fund Management: European Wealth
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D1G3Y 28th Sep '11 506 of 608
3

There could be no further updates for a couple of weeks yet if Aex only advise on results after testing.

I am interested if/when the official approval for KN-1 tie into SongSong will be announced.

"Ndovu Resources Limited, with support from TPDC and the Ministry of Energy, has indicated that they wish to tie into the gas processing plant on Songo Songo Island and sell up to 10 MMcfd from their Kiliwani North field. The Company is currently in discussions with Ndovu to agree appropriate commercial terms"

Also it will be interesting to see the terms that the tie back is granted under I.e. Will there be a % split at a set $ rate dedicated to the power sector? and how much will Aex get for the remaining MMcfd.

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edgar222 29th Sep '11 507 of 608
1

I understood that a letter of intent ha been signed for KN1 gas to the private sector not industrial, and therefore worth more to AEX. Read that a while ago now. Jan/Feb maybe

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marben100 29th Sep '11 508 of 608
8

In reply to edgar222, post #507

To clarify see the interims:

 Commercial negotiations are well-advanced for both gas sales and connection to the gas processing and transportation facilities.

 

There are two distinct negotiations:

a) Sales agreements with end-users. These agreements will determine the tariff Aminex receives

b) Agreement to tie in to the the Songo-Songo plant and use processing facilities and pipeline transport.

The latter will determine i) how much gas Aminex can feed in to the plant/pipeline and when; ii) what tariff Aminex will have to pay to have KN-1 gas processed and transported.

A seperate matter that must have already been agreed is fiscal terms with the Tanz govt for revenue sharing. These would be defined in the development licence that has been granted. However, I expect that Aminex will not have to pay anything to the govt for several years, because of the very substantial (and increasing with Nyuni-2) cost recovery that I understand (from Brian) can be offset against those revenues.

I would expect that once all the agreements are in place, Aminex will be able to advise investors of the revenue and netback that can be expected per mcf sold, though commercial confidentiality may prevent a breakdown of costs being made public.

When these announcements are made, including anticipated timing of first gas, I'd expect a material impact to the SP. That impact could be positive or negative, depending on how the netback and timing compare to market expectations. I don't think those expectation are particularly high, though!

I hope that when the announcement is made, Aminex makes the cashflow impact of cost-recovery clear to the market. Experience with Soco shows that the market can be slow on the uptake, unless things are spelt out in words of few syllables!

Cheers,

Mark

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