Bounty Oil & Gas expects US$2.1 million yearly from Tanzania gas sales

Australian oil and gas explorer with interest at the Nyuni PSA with 5 percent interest has said it expects to generate net operating profit before tax for Bounty of $3 million (US$2.1 million) per annum according to the latest financial statement from the company.

Bounty Oil believes that even after TPDC exercises it back-in right and acquires 5% of the interest it will still make the A$3 million profit as anticipated.

After the TPDC buy in we still anticipate that in 2016 Bounty will receive gross annual revenue of around A$ 3 million from this project.” Bounty’s CEO, Philip Kelso said.

Production start is scheduled for November 2015 and production is anticipated to be at a stabilised rate of 20-30 MMcf/day is nearing with a short tie in from the Plant to the Kiliwani North Gas Field now completed, packing of the line with gas having commenced, Minor works have also been completed at the Songo-Songo Gas Processing Plant and negotiation of the gas sales agreement is in its final stages.

“The KN-1 well has now been tied into the main pipeline infrastructure and is awaiting completion of the adjacent Songo Songo processing plant. The Company has been advised that this will be completed shortly and commissioning gas is to be produced thereafter,” Kelso added.

Meanwhile at the license a new 3D seismic planned to image deep water turbidite gas plays of up to 1.3 TCF potential. A major gas target named Pande West has been identified in the deep water eastern section of the Nyuni Block where Bounty holds a 10% interest and 3D seismic surveys are planned for early 2016.

Author: OilNews

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