TANZANIA: Aminex Releases Positive Outlook Terms 2024 as Decisive
Outlook:
• The operator of the Ruvuma PSA, ARA Petroleum Tanzania Limited (APT) continues to progress operations at the Ntorya gas field, with the following planned for 2024, upon receipt of the Development Licence:
o Contract a rig operator to undertake the drilling of the Chikumbi-1 appraisal well and, if successful, to complete the well as a gas producer.
o Re-enter and repair a tubular leak in NT-1 to enable the well to be completed as a gas producer.
o Undertake further testing on NT-2, currently suspended as a gas producer, using a mobile test unit and refine the design of in-field gas processing facilities.
o Support the Tanzanian authorities in the construction of a spur pipeline to take gas from Ntorya to the Madimba Gas Plant and accommodate gas extraction from the field.
• The Company’s largest shareholder, Eclipse Investments LLC, has agreed a funding facility for US$3 million, ensuring Aminex has sufficient working capital available after 2024 and until the commencement of revenues from Ntorya gas sales.
During 2023 and early 2024:
• Completed the processing of 3D seismic data, the largest onshore seismic campaign in East Africa covering 338km² around Ntorya.
• Selected a more optimal location for drilling the Chikumbi-1 appraisal well through the utilisation of the 3D seismic data.
• Completed and submitted the Ntorya Field Development Plan (FDP), which has now been approved by the Tanzania Petroleum Development Corporation (TPDC).
• Applied for a 25-year Development Licence based on the approved FDP. Approved by the Tanzanian authorities, including Cabinet sign-off, and awaiting issuance of the signed licence from the Ministry of Energy.
• Signed a 25-year Gas Sales Agreement with APT and TPDC.
• Ruvuma PSA Farm-Out Carry of US$35 million covered Aminex for all 2023 Ruvuma costs with US$29.6 million of the Carry remaining as at 31 December 2023.
• Maintained reduced gross G&A costs (before one-off costs and exceptional items) of US$1.58 million per annum in 2023. Despite a slight inflation-related increase on 2022, base running costs are 70% lower than 2018 levels when cost control measures commenced.
• Loss for the year of US$1.12 million (2022: loss of US$4.06 million).
“This year will be a decisive one for our Company. We expect significant progress in the Ntorya project providing shareholders with several catalytic events likely to improve the Company’s underlying value. Events have demonstrated the Operator’s capacity to run numerous critical negotiations and operational workstreams while maintaining the full support of the Tanzanian authorities. The net result for Aminex is an essential shift in the narrative of Ruvuma, which can now be considered a potentially world-class discovery with a path to positive cash flow by next year – a remarkable turnaround for the Company since 2020,” says Executive Chairman Charles Santos.
“We expect a Development Licence will be issued by the Ministry of Energy very soon, enabling the Ruvuma partners to unlock the project’s potential by starting both the drilling and construction work that will lead to first gas. The 25-year Development Licence will be the first such licence issued in Tanzania for 13 years and signifies the government’s commitment to developing its onshore energy resources.”