Drilling will soon begin at the Ntorya-3 well onshore Tanzania, Aminex said in an operations update statement released last week.
The London- and Ireland-listed company said it had actively engaged with the Tanzania authorities and third-party engineering companies on advanced well planning and drilling management for the well. Drilling would begin as soon as operationally possible, the update said.
The company has tendered for a rig that will be used for Ntorya-3 as well as for other exploration and development drilling in the Ntorya gas field, and possibly in other assets the company holds in Tanzania, it added.
Aminex is operator with 75% of the onshore Ruvuma Production Sharing Agreement (PSA), which includes the Ntorya gas field, and which is estimated to hold a gas resource of 1.3 tcf (36.8 bcm).
The company is also operator of the onshore/shallow water Kiliwani North Development Licence, in which it holds 57.44%. The field has produced gas from one well since April 2016.
Aminex said it wants to develop other wells in the vicinity of the Songo Songo Island gas processing plant. Gas from Kiliwani is sold at the well head at a US dollar fixed price and then fed directly into Tanzania’s pipeline infrastructure to Dar es Salaam.
The operations update said the Kiliwani North-1 well produced about 3.6 bcf (101.9 mcm) of gas in 2017, with production during the month of December amounting to 95 mcf (2.69 mcm) without intervention and due to recharged natural pressure. The flow runs at up to 9 mcf (254,851 cubic metres) per day.
The company said it is currently reprocessing existing seismic data over the Kiliwani North Block and the adjoining Nyumi Area acreage close to the Songo Songo Island gas processing plant with the intention of identifying new drilling targets that can be brought on-stream quickly to supplement gas production from the existing Kiliwani North-1 well.
Aminex also holds a 93.33% stake in the Nyumi Area Production Sharing Agreement (PSA), where it is also operator. The PSA covers an onshore/shallow water/deep water area. “Nyumi Area acreage offers both near term development opportunities on the shallow water portion of the licence and high impact low risk exploration in the proven world class deep water portion of the licence,” the statement said.
The company said it is actively progressing the development of Ntorya, Kiliwani North and other assets with the aim of creating a balanced full cycle asset portfolio which includes production, development and exploration activities.
Aminex said it is also making progress on an independent evaluation covering all the company’s Tanzanian resources, which should be complete early this year. Aminex commented that the new report will supersede and update all previous reports on the company’s concessions in the country, based on newly acquired data and the ongoing reinterpretation of technical data across all assets.
The update also stated that domestic demand for gas in Tanzania is strong. The country produces more than 120 mcf (3.39 mcm) per day and demand is expected to eventually exceed 850 mcf (240 mcm) per day.