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Friday, March 3, 2023
In its operational update, Aminex plc announced that it has been informed by ARA Petroleum Tanzania, the operator of the Ruvuma PSA, of a further delay with the spudding of the Chikumbi-1 well (CH-1).
Aminex states that the results of the initial 3D seismic processing and interpretation, to optimize the target location of the CH-1 well at the Cretaceous reservoir level, will be available by mid-March. Following a review by the operator, the CH-1 well will no longer target the lower Jurassic zone. The processing of the seismic data is more than 80% complete. The CH-1 had an original target spud date in November 2022.
Aminex also reported that plans to accelerate gas production, as outlined in the announcement of November 1, 2022 have been further developed with the Tanzanian authorities, now targeting October 2023 for production of first gas. This acceleration in the gas production schedule will result in earlier gas revenues to the Company (Q4 of 2023), decoupling the production of first gas from the spudding of the CH-1 well.
Several critical inter-related workstreams and ongoing negotiations with the Tanzanian authorities have re-defined and further de-risked the Project, advancing first gas production by more than a year.
These inter-related workstreams are:
The successful conclusion to the above workstreams is expected to have the following impact on the Project:
Aminex, with a 25% non-operated interest, is carried throughout the ongoing work program 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 gas-field at zero cost to Aminex.
Charles Santos, Executive Chairman of Aminex commented: “Today’s update demonstrates APT’s capacity, not only to run multiple critical negotiations and a significantly broader technical engagement but also its high level of confidence in the Project, fully supported by the Tanzanian authorities. Accelerated gas production, now targeted for October 2023, shifts the narrative of Ruvuma; it further de-risks the Project from a dependence on the spudding and outcome of CH-1 to a more anchored and broader development effort as we move toward early gas production.
“Such de-risking continues to honor the upside potential that will come from the drilling of CH-1, the 3D seismic interpretation and the full development of the field. As mentioned in our previous announcement, these developments are potential game-changers for all stakeholders in the Ruvuma development. Moreover, locking in the development license and halving the timeline for gas production and cash flow to the Company more than offsets the delay in spudding the CH-1 well. We thank APT and the Tanzanian authorities for their significant efforts in bringing the Project to fruition and look forward to providing a more detailed update to the market on completion of the current workstreams.”
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