REG - Aminex PLC - Ruvuma Operations Update

AminexAnnouncement

01/11/2022 07:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221101:nRSA8758Ea&default-theme=true

RNS Number : 8758E  Aminex PLC  01 November 2022

1 November 2022

 

Aminex plc

("Aminex" or "the Company")

 

Ruvuma Operations Update

Aminex has been informed of a delay to the spud date of the forthcoming
Chikumbi-1 ("CH-1") well by the operator, ARA Petroleum Tanzania Limited
("APT"). Due to ongoing negotiations with the Tanzanian authorities and
contractors, Aminex has been advised that the expected spud date for CH-1 has
now slipped to March 2023 due to rig availability. The Company is however
pleased to provide the market with an update on current operational
activities:

·    APT and the Tanzania Petroleum Development Corporation ("TPDC") are
in advanced negotiations to accelerate gas production from the Ntorya
gasfield. The proposal, following the successful drilling of CH-1, is to
utilise the newly drilled well and the existing suspended gas producers,
Ntorya-1 ("NT-1") and Ntorya-2 ("NT-2"). This is expected to lead to gas
production and receipt of production revenues in early 2024, almost 12 months
earlier than originally envisaged.

·    The acceleration of production through the initial three wells is
strongly supported by the Tanzanian authorities and is based on the following:

o  Commitment by the TPDC to construct a 30 km pipeline as soon as possible
to tie the Ntorya gasfield into the existing Madimba processing and pumping
station.

o  The incorporation of three producing wells - CH-1, NT-2 and NT-1, the
latter of which will be worked-over after the drilling of CH-1 to repair a
minor leak in the casing string.

o  The three wells are expected to produce at least 60 mmscfd in aggregate.

o  The estimated gross capital budget for 2023, which has been approved by
the joint venture partners, is US$30.8 million, includes the processing and
interpretation of the 3D seismic data, drilling and testing of CH-1, re-entry
and work-over of NT-1, together with the purchase of the necessary manifold,
flowlines, fiscal meters and hook-up system to facilitate early production.

o  Early production success, from the initial three well development, will
see the drilling of up to five additional development wells taking the
expected field gas production to rates in excess of 140 mmscfd, as previously
reported.

·    Negotiations continue regarding the finalisation of gas terms and gas
pricing.

·    The Ruvuma 3D seismic acquisition programme, the largest 3D survey to
have been conducted to date in onshore East Africa, completed on 9 October
2022 and the processing and interpretation of data will continue into 2023.

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 will see the Company through to the
commencement of commercial gas production from the Ntorya gasfield, now
scheduled for early 2024, and to increased production from full field
development at zero cost to the Company, which envisages the drilling of up to
five additional wells in 2024. APT's revised mapping and internal management
estimates currently suggest a risked prospective gas in place ("GIIP") of
3,024 Bcf

 

(gross basis, mean case) within multiple reservoir sand lobes and a
prospective risked recoverable gas resource of 1,990 Bcf (gross basis, mean
case), which will be confirmed in due course by the recently acquired 3D
seismic data.

Charles Santos, Executive Chairman of Aminex commented:

"Whilst I am disappointed to announce a delay in the spudding of the important
CH-1 well, the acceleration of production is a game changer for all
stakeholders in the Ruvuma development and will halve the time to gas
production from Ntorya and receipt of revenues to the Company. The advanced
negotiations on fast-tracking production reflects a strong desire of the
Tanzanian authorities to bring additional gas to the market as soon as
possible and the steadfast commitment of the Operator to move this project
forward at an enhanced pace for the benefit of all parties involved. We would
like to thank APT and the Tanzanian authorities for their cumulative efforts
in continuing to progress the project."

 

The information contained within this announcement is considered to be inside
information prior to its release, as defined in Article 7 of the Market Abuse
Regulation No. 596/2014, and is disclosed in accordance with the Company's
obligations under Article 17 of those Regulations.

 

 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

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDFIFFDLLLLIIF