viewAminex PLC

Aminex edges towards drill permits at Ruvuma in Tanzania


  • Aminex is an oil and gas explorer focused primarily on Tanzania
  • Farm-out of Ruvuma to Oman’s Zubair Corporation will pay for new drilling
  • Remedial work at Kiliwani North to be followed by seismic acquisition

Quick facts: Aminex PLC

Price: 0.5275 GBX

Market: LSE
Market Cap: £19.89 m

What it owns

Ruvuma PSA (Tanzania) gas: 75% working interest through subsidiary Ndovu Resources that will fall to 25% once Zubair deal completes

Kiliwani North (Tanzania) gas: Aminex owns 63.83% through Ndovu

Nyuni PSA : Offshore licence surrounding Kiliwani. Aminex owns 100% through Nduvo

How it's doing?

Aminex PLC (LON:AEX) and Solo Oil PLC (LON:SOLO) clarified the budgetary situation for the work programme to develop the Ntorya field in Tanzania last year. 

The firm approved budget for 2020 is US$1.447mln (gross), principally relating to licence maintenance and planning activity.

There is also a contingent budget of US$41.425mln, which requires confirmation by all partners in accordance with the Ruvuma joint operating agreement.

This covers the drilling of the Chikumbi-1 well and the acquisition of extensive 3D and 2D seismic surveys and depends on the Mtwara licence extension for the drilling of the Chikumbi-1 well and the granting of the Ntorya development licence for the seismic programmes. 

Solo owns 25% of the Ruvuma PSA where Ntorya is situated.

Aminex owns the remaining 75% though it has agreed to farm this down to 25% in a deal with Oman’s Zubair Corporation that will see it carried on the planned work programme.

"Both parties are keen to expedite progress on the licence and will consider committing to accelerating certain preparatory works in a pro-active manner at the appropriate time," the company said in a statement.

In February, Aminex said Ntorya discussions had progressed and it can move to order long-lead items, once there’s approval of the tendering and procurement process.

The company added it is teeing up their operations in Tanzania in anticipation of the ‘greenlight’ from regulatory authorities.

In country, the APT joint venture has secured offices and staff accommodation.

What the boss says: John Bell, chairman 

"We have cut costs to appropriate levels and we are awaiting Tanzanian Government approval to move forward with the Ruvuma farm-out to ARA Petroleum of Oman, which upon completion will deliver a $5m cash inflow and a $35 million carry through the further appraisal and development of the Ntorya gas-field."

Inflexion points

  • Aminex has finalised the anticipated programme for the planned Chikumbi-1 and signed a rig sharing agreement with Heritage Oil, for each company to reduce mobilization and demobilization costs.
  • Zubair Corporation to pay US$5mln, in two tranches, to develop the Ntorya asset, which hosts a ‘contingent’ 763bn cubic feet of gas.
  • Aminex has also put together plans for a 3D seismic programme, which will cover some 220 sq km over the Ntorya development area.
  • Chikumbi-1 will be located about 4 kilometres from the successful Ntorya-2 well, drilled in 2017, and drilled down to a depth of 3,485 metres.
  • If it proves successful, it is expected to be completed as a future producer in the Ntorya development.
  • The well has two objectives – to expand and delineate the Ntorya project, and, to test a deeper, Late Jurassic exploration target.
  • Zubair will carry up to US$35mln in costs regarding the development of Aminex’s remaining 25% interest.
  • Zubair will also carry out a minimum work programme including the drilling, completion, and testing of the Chikumbi-1 well
  • At Kiliwani North, Aminex is undertaking remedial work and intends to take the opportunity to perforate a deeper and previously untested, potentially gas-bearing section.

Blue Sky

Aminex has also identified prospective areas within the Kiliwani North and Nyuni Area concessions, which will be the subject of new seismic data acquisition, with plans to acquire some 275 kilometres of 3D seismic.

The aim is to identify undrained compartments of the Kiliwani North structure and to high-grade the Kiliwani South prospect to ‘drill-ready’ status.

Kiliwani South has previously been estimated to host a possible 57bn cubic feet of in-place gas.


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Aminex PLC looks ahead to Chikumbi drilling and completion of Ruvuma farm-out

Jay Bhattacherjee, chief executive of Aminex PLC (LON:AEX), speaks to Proactive Investors following the release of their 2018 results. Looking to 2019, he says the completion of the Ruvuma farm-out will be a significant milestone for the company and an event which will bring in a further...

on 30/4/19

3 min read