REG - Aminex PLC - Ntorya Operations Update

AminexAnnouncement

05/03/2025 07:00

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RNS Number : 3413Z  Aminex PLC  05 March 2025

5 March 2025

 

Aminex plc

 ("Aminex" or "the Company")

 

Ntorya Operations Update

 

Aminex, the oil and gas exploration and development company focused on
Tanzania, is pleased to announce the following operations update on the Ntorya
development:

Ntorya to Madimba Pipeline

·    The Tanzania Petroleum Development Corporation (TPDC) launched a
restrictive tender for the procurement of an engineering, procurement and
construction (EPC) contractor for the construction of the gas pipeline from
the Ntorya gas field to the Madimba gas processing plant (the Pipeline) in
October 2024. We understand that the process for the award of the EPC contract
is almost complete and hope to receive further news from the TPDC shortly.

 

·    Following the signing of a Gas Sales Agreement and the award of the
Development Licence in 2024, and with the anticipated award of the EPC
contract for the Pipeline, there is now a clear path to monetisation of the
Ntorya gas field.

Updated Field Development Plan

·    We are also pleased to announce that the operator has updated its
field development plan (FDP) for the Ntorya project to reflect the results of
the 3D seismic programme. The updated FDP has been presented to the TPDC for
approval.

 

·    Following production from the Ntorya-1 well (NT-1), Ntorya-2 well
(NT-2) and the planned Chikumbi-1 well (CH-1), the FDP anticipates a phased
development increasing the field production rate within around a five-year
period from 60 mmscf/d to 140 mmscf/d to 280 mmscf/d, subject to the necessary
export routes and offtake markets being built and sourced for the additional
production. This will be achieved through a drilling programme of an
additional 13 wells in the coming decade.

 

·    The Company forecasts that all of its capital expenditure
requirements will be met through its Carry and future Ntorya revenues.

Operational activities

·    The operator (ARA Petroleum Tanzania (APT)), continues with the
procurement and installation of processing facilities, flow lines, hook-up
systems, manifolds and fiscal meters, to ensure the integrated development of
the project and enable production from NT-2 into the Pipeline. The NT-2 well
is scheduled to be ready to produce gas in time for the completion of the
Pipeline.

 

·    As previously announced, the drilling of CH-1 and workover of NT-1
are planned to occur after the commencement of production from NT-2 and we
await a further update from APT on the proposed drilling schedule once the EPC
contract for the Pipeline is awarded.

 

·    Other operational activities have been completed in recent months,
including land acquisition and compensation relating to:

o  The CH-1 well pad and access road

o  Extension of the previous Ntorya-3 site for the construction of a workcamp
and open yard storage area for operations

o  The upstream processing facilities

o  Rights of way for the NT-1 and NT-2 flowlines.

 

·    As previously announced, all casings and tubulars necessary for the
drilling of CH-1 and workover of NT-1 have been received, and the wellhead for
CH-1 is ready for shipment.

 

·    The work programme and budget for 2025 prepared and presented by APT
to Aminex and the Tanzanian authorities was approved in November 2024. The
total budget is over $41 million and includes all of the activities set out
above.

 

·    A very limited competent person's report (CPR) was prepared for use
by the TPDC to justify the construction of the pipeline. A full CPR over the
Ntorya gas field is not likely to be commissioned until after the drilling of
CH-1 and workover of NT-1.

 

Charles Santos, Executive Chairman of Aminex commented:

"I am pleased to say significant progress has been made on all fronts of the
Ntorya gas development in recent months, following the award of the 25-year
Development Licence last year. The Tanzanian government continues to express
its full commitment to the project and we hope to receive confirmation of the
award of the pipeline contract shortly. APT, meanwhile, is preparing the
ground for first gas.

The important seismic results have allowed APT and Aminex to propose a more
extensive and longer-term plan for Ntorya, including the additional drilling
programme and consequent increased gas production, substantially increasing
the potential value for Aminex shareholders. This Ntorya gas will also benefit
the Tanzanian people considerably, increasing the reach and reliability of
electricity supplies, supplanting dirtier fuels such as coal and wood, and
helping boost the country's industrialisation.

We thank the Tanzanian government and the TPDC for its support and its
steadfast efforts to make the Ntorya pipeline a reality for our project and we
thank APT for its continued efforts to progress the development.

We should note that like all big projects with multiple state national and
international parties, project timelines can be impacted as the various
stakeholders synchronise their workstreams and coordinate processes.
Nevertheless, last year has been by all accounts a pivotal year, and we now
look forward to a very active and dynamic 2025."

 

 For further information:

 Aminex PLC                            +44 203 355 9909
 Charles Santos, Executive Chairman

 Knights Media & Public Relations      +44 203 653 0200
 Jason Knights, Sabina Zawadzki

 Davy                                  +353 1 679 6363
 Brian Garrahy

 Shard Capital                         +44 20 7186 9952
 Damon Heath

 

Notes to Editors:

The Ntorya Development Licence area lies adjacent to a region containing
supergiant world-class LNG projects, extending from offshore Tanzania into
Mozambique waters to the south. The JV partners intend to produce Ntorya gas
into the growing domestic gas market, helping to alleviate energy poverty and
boost the energy transition in Tanzania. A multi-year gas sales agreement was
signed earlier this year with the Tanzania Petroleum Development Corporation.

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 field at zero
cost to the Company.

 

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