Aminex Seeks Remedies as Kiliwani North-1 well Pressure Dips

Aminex reports that production from the Kiliwani North-1 well (KN-1) is currently fluctuating below 1 million standard cubic feet per day due to low reservoir pressure and inlet pressure restrictions of the gas processing plant.

A review of the existing technical data leads the Company says has led to a conclusion that Kiliwani North-1 is currently draining a compartment within the greater Kiliwani North structure and is exhibiting slow recharge across faults or via tortuous pathways.

Concerned over the decreasing wellhead pressure the Company says it is now in advanced discussions with the Tanzania Petroleum Development Corporation (TPDC) to lower inlet pressure at the gas processing plant and for the installation of compression facilities so as to boost production rates and suitable compressors are currently being sourced.

In September Aminex said it had prepared a programme to re-enter the Kiliwani North-1 well to gather downhole data as a result of the wellhead pressure decline and was reviewing possible alternatives for remediation in the near future to maximise recoverable resources.

According to the operator the Kiliwani North-1 averaged approximately 15 MMcfd during the first six months of 2017.This is a drop from July 2016 when the company reported that gas production from the Kiliwani North-1 well in Tanzania reached 30 mmcf per day (approximately 5,000 barrels of oil equivalent per day) with stable pressure recordings at that rate. During the same period Aminex said it ancipated the Songo Songo plant where it was the sole producer would continue to require in excess of 23 mmcf per day to operate.

Already Aminex has notified shareholders that there may eventually be an adjustment to the carrying value of the Kiliwani North asset, which the Company does not at present expect to be material on the 28 bcf of gross resources independently estimated for KN-1 as appeared in the 2017 Half Year Report.

The partners have to date recovered in excess of 6 billion cubic feet (“bcf  from the KN-1 well.

Aminex has 54.575% of the Kiliwani North Development Licence through its 100% owned subsidiary Ndovu Resources Limited alongside RAK Gas LLC 23.75%, Bounty Oil & Gas NL 9.5%, Solo Oil 7.55% and TPDC 5%