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Aminex PLC

Aminex to progress Ruvuma once farm-out completes

Snapshot

Zubair Corporation will pay US$5mln in two tranches to develop Ntorya

Aminex

Quick facts: Aminex PLC

Price: £0.01

Market: LSE
Market Cap: £43.36 m
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  • 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 now 31 Otcober 

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

 

 

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 the 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.

 

What the boss says: John Bell, chairman 

"We have cut costs to appropriate levels and we are awaiting Tanzanian Government approval to move forward with the Ruvuma farm-out to ARA Petroleum of Oman, which upon completion will deliver a $5m cash inflow and a $35 million carry through the further appraisal and development of the Ntorya gas-field."

 

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 0.85p, Aminex is valued at £28.8mln.

 

 

 

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