Aminex's Tanzania Field Still Spluttering
AIM-listed minor onshore Tanzanian gas producer Aminex had only “minimal and intermittent” output from its sole producing field Kiliwani North in1H2018, it said September 28 reporting a 1H net loss.
Last year Aminex, the field operator, said that field was flowing less than 1mn ft3/d – down from 15mn ft3/d in 1H2017. It has only just well on the field: KN-1.
KN-1 has produced 6.5bn ft3 since it started up April 2016, said Aminex in its 1H results adding: “But mechanical limitations at the [third-party 140mn ft3/d] Songo Songo Island gas process plant, in combination with reservoir compartmentalisation, have prevented expected recoveries and regular production from the well.” It had mobilised staff and equipment for “initial remedial work” on KN-1.
Aminex made a net loss of $2.36mn in 1H2018, more than its $2.28mn net loss in full year 2017, it said September 28. That contrasted with a 1H2017 profit of $1.56mn when KN-1 was flowing well.
In July, Aminex said it will bring in its key Omani shareholder Zubair to become operator with a 50% interest in its promising Ruvuma onshore licence just inside Tanzania though near the border with Mozambique; that includes the Ntorya gas discovery with some 1.9 trillion ft3 (53bn m3) of gas in place. On completion of that farm-out, Aminex will receive $5 cash and a net $35mn carry for its remaining 25% stake in the development. CEO Jay Bhattacherjee said September 28 that farmout would be “an advantageous way to accelerate development and generate material cashflow from Ntorya.”
Aminex’s Kiliwani South licence could be also a potential lead, with 57bn ft3 gas in place, the company added.