Kiliwani North Well Production Up in December,Aminex Seeking Remedies

Aminex has reported that the Kiliwani North well produced 95 MMcf of gas during the month of December up from after fluctuating below 1 million standard cubic feet per day in October and November due to low reservoir pressure and inlet pressure restrictions of the gas processing plant. Aminex says the well pressure is up without intervention and attributes this due to natural pressure recharge, with flow at rates up to 9 MMcf/d recorded in December.

This is however much less than what was being produced earlier with approximately 15 MMcfd during the first six months of 2017 and in July 2016 gas production reaching 30 mmcf per day (approximately 5,000 barrels of oil equivalent per day). In total total gross production from the Kiliwani North-1 well in 2017 was approx. 3600 MMcf (3.6 Bcf) compared to approximately 3Bcf produced in six months of 2016 since commissioning.

According to the license operator despite the increase in pressure Aminex and Tanzania Petroleum Development Corporation are working together on the installation of compression facilities in order to maximise recovery from Kiliwani North-1 as it had earlier informed shareholders.

Further Aminex says it is proceeding with the planned surveys to identify potential new drilling targets which could be brought on stream relatively quickly to supplement gas production from the existing Kiliwani North-1 well. The operator is currently reprocessing existing seismic data over the Kiliwani North block and the adjoining Nyuni Area acreage close to the Songo Songo Island gas processing plant.

The Company is also actively engaged with the Tanzanian authorities and with third-party engineering firms on advanced well planning and drilling management for the Ntorya-3 well which it is says is committed to drill as soon as operationally possible. A tender process is in progress for a rig to drill Ntorya-3 as well as for other exploration and development drilling in the Ntorya gas field and potentially other assets which the Company operates in Tanzania.  Aminex anticipates the spud date for Ntorya-3 will be announced once a rig has been secured.

Aminex had earlier announced plans to acquire a new 3D seismic over the key Pande West lead. There was however no drilling commitment with the operator stating it was unlikely to be in a position to drill expensive deep water well in the Nyuni Area without introducing a larger company as a farm-in partner.

Work is well advanced on the Aminex’s independent evaluation report covering all its Tanzanian resources and this is on track to be completed in early 2018.  The new report will supersede and update all previous reports on the Company’s concessions in Tanzania, based on newly acquired data and the ongoing reinterpretation of technical data across all assets.

“We are happy to see that planning for further development at Ntorya is progressing and that suitable drilling equipment is being sought for the drilling of the Ntorya-3 well.  Production at Kiliwani North has continued, and will be enhanced with compression in due course, which is an encouraging development. The new CPR is a key step in realising value at Ntorya and we look forward to its conclusion, which we understand remains reasonably on track and is expected to be completed in the next month,” Neil Ritson, Solo’s Executive Chairman, commented.

Aminex also reportspPositive discussions are ongoing with the Tanzanian authorities to progress the outstanding Ntorya Development Licence application.

Aminex operates the Nyuni license with a 93.3333% working interest through its wholly owned subsidiary Ndovu Resources Limited. In the Kiliwani north field Aminex has 54.575% interest 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%.

Remember to get information on all the expected upstream activity in Tanzania by acquiring the 2018 Tanzania Upstream Sector Outlook by contacting our sales team: +254724684368

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