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Tanzania draws closer to gas production from the Kiliwani North 1 well

Aminex has notified shareholders that the Tanzanian Petroleum Development Corporation (TPDC), through its contractors, has now begun constructing the Skid Metering Unit within the boundaries of the Kiliwani North Development Licence (KNDL) and have completed laying pipe to the KNDL boundary.

Once construction is complete the Kiliwani North 1 well (KN-1) will be connected to the new Songo Songo processing plant where the gas, once produced, will be processed prior to being transported and sold in the new Dar es Salaam to Mnazi Bay pipeline.

The KNDL joint venture has been notified by TPDC that pressure testing of the pipeline is expected to commence during the first half of 2015 and the final construction of equipment to connect is expected within this timeframe in order for commissioning to occur.

“As the Dar es Salaam to Mnazi Bay pipeline nears completion and the final stages of construction are now occurring on the Kiliwani North-1 well, we look forward to first commercial gas production from the field which will place the Company in the position of being the first new Tanzanian gas producer in recent times,” says Aminex CEO, Jay Bhattacherjee.

The board has also said the delays in finalizing the Gas Sales Agreement is largely because of Tanzanian authorities long approval process.

The Board says it expects the GSA to be signed prior to any gas being delivered for pressure testing or commissioning and the Company will accordingly continue to keep the market informed on progress.

The KNDL includes the KN-1 well, which is expected to produce at approximately 20 mmcfd as soon as the well is brought on stream and will represent a major milestone for Aminex by providing first revenues from Tanzania.

Independently verified resources at Kiliwani North are estimated to be 45 billion cubic feet of gas in place.

Aminex is the Operator at Kiliwani North Development License with about 59.5% withholding interest after selling 6.5% interest to Solo Oil with an option to acquire another similar stake once the GSA is signed.

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