“Ntorya-3 is ready to go but want to make sure, we maximise
as many targets as we possibly can.”
Aminex plc (LON:AEX) has been receiving some
encouragement following re-assessments of the recent Ntorya-2 appraisal
well result.
Broker Shore Capital calculated that on a revised view of
the Ruvuma project in Tanzania, which includes Ntorya, the shares are worth
6p/share against a 4p per share valuation previously.
It notes the shares have retreated from 7p since April
but sees this as overdone.
Concerns over the flow rate at Ntorya 2 are explained by a
cautious approach taken by Aminex says the broker, with the possibility of a
well blow-out if preventative action had not been taken.
“Perhaps in contrast with some other views, we were
therefore very encouraged by the outcome from Ntorya-2.”
The well has increased the size of the discovery and
de-risked additional prospectivity at Ruvuma, it added.
Sanguine about Tanzania
Shore is also reasonably sanguine about the state of
Tanzania, where a ban of gold concentrate exports has hit Acacia
Mining and sentiment about the country hard on worries about its financial
situation.
Aminex has a stake in the producing Kiliwani gas field in
Tanzania and Shore understands that three months of invoices are currently
outstanding.
Reduced gas pressure at Kiliwani has prompted Shore to lower
its revenues estimates this year to US$9.4mln (US$11.4mln) with profits of
US$3.15mln forecast.
Even so, Shore believes Aminex’s financial position is
robust.
"Following last year’s equity fundraising exercise,
which introduced strategic investor Zubair Corporation of Oman, we continue to
see sufficient headroom for the Ntorya-3 appraisal well, due for spudding later
this year.
“Aminex is now profitable and fully funded to drill
Ntorya-3, the broker added.
Over the next few months its expects to see an update on
basin modelling, Ntorya-3 drilling plans and the announcement of submission of
the Ntorya field development plan.
Balance sheet strength a boon
In an interview with Proactive, Bhattacherjee also
emphasis the company’s healthy financial position and said that being able to
fund itself was a big step forward for the company.
“For us to be debt-free –establishes a new base from which
to grow the business.”
Bhattacherjee also believes Tanzania’s unhappiness with the
miners may be good for the oil and gas sector.
If the miners are required smelter resources in the country,
'that will need a lot of gas'.
Deep potential at Ruvuma
Being self-funded means it can consider the full potential
of Ruvuma and how best to exploit it, which may mean going deeper.
And Ruvuma will be the key focus for the company going
forward, he told Proactive.
“Ntorya-3 is ready to go but want to make sure, we maximise
as many targets as we possibly can.”
"We are working is on a basin model and evaluation some
of the deeper targets for liquids. So we are not only planning the next well
but subsequent wells after that as well.
"The Cretaceous systems are big, but some of the deeper
Triassic and Jurassic reservoirs are even bigger."
Article source: proactiveinvestors
Image source: Geothermal