Aminex plc
("Aminex" or
"the Company")
Successful Ntorya-2 Well Test
Aminex is pleased to confirm that the
Ntorya-2 appraisal well has now been successfully tested and is being suspended
for future production. Ntorya-2 was drilled in the onshore Ruvuma Basin of
southern Tanzania, on the Mtwara Licence (Aminex 75%, operator) which is
governed by the Ruvuma Production Sharing Agreement.
Highlights:
· 51 metres
gross reservoir section associated with significant gas influx and pressure
· Company was
required to increase drilling mud weights in order to maintain well control and
operate within safety parameters - higher mud weights resulted in reservoir
invasion
· Company
limited test flow rates with a 40/64" choke and the well flowed dry, high
quality gas at average stable rate of 17 MMscfd (2,833 BOED)
· No formation
water was produced during the test, leading the Company to conclude that the
Ntorya-1 and Ntorya-2 area contains a significant volume of gas in place
Jay Bhattacherjee, CEO of Aminex
said:
"The overall results of Ntorya-2
have substantially exceeded Aminex's expectations and now we have the potential
for a commercial development project in the Ruvuma Basin. Ntorya-2 is currently
being suspended for future production. Further analysis of the well results is
ongoing and we will keep shareholders informed of progress.
Despite the measures we had to take
to control the well during drilling, due to a large gas influx in the reservoir
section, the Ntorya-2 test clearly supports our belief that there is a
considerable gas basin to be exploited in our Ruvuma onshore acreage which we
are looking forward to developing. This project should ultimately be of immense
benefit to the Tanzanian economy and is an excellent result for our patient and
supportive shareholders and all other stakeholders."
Further to the Company's 6 February
2017 announcement, the well was drilled to a final total vertical depth of
2,795 metres. At 2,593 metres drilling depth, the well encountered a gross
gas-bearing reservoir unit of approximately 51 metres. The reservoir section
was associated with significant gas influx and pressure was much higher than
expected.
The well was perforated over a gross
interval of 34 metres. It underwent a testing programme for a period of
160 hours and flowed across a variety of choke sizes. In order to preserve
reservoir integrity and operate safely, the Company limited test flow rates and
the well flowed dry, high quality gas at average stable rate of 17 MMscfd
(2,833 BOED) on a 40/64" choke. Strong pressure build-up occurred in all instances
during the well test.
Due to strong gas influxes
encountered while drilling through the reservoir section, and in order to
preserve the safety of the well operations, Aminex was required to increase
drilling mud weights in order to maintain well control and operate within
safety parameters. The higher than planned mud weights resulted in reservoir
invasion which tempered overall test performance.
According to wireline logs, Ntorya-2
encountered the equivalent reservoir section at approximately 74 metres higher
than in the Ntorya-1 well. No formation water was produced during the test,
leading Aminex to conclude that the Ntorya-1 and Ntorya-2 area contains a
significant volume of gas in place. Ntorya-2 also encountered traces of oil in
the gross reservoir interval and the Company is updating its basin model to
determine the optimal drilling depths for Ntorya-3 and for future development
wells. Post analysis, Aminex will be able to revise its interpretation of
in-place volumes.
Aminex will now complete a full
analysis of all technical data prior to applying for a 25-year development
licence over the Ntorya appraisal area.
Further details of the Ntorya-2
appraisal well can be found on the Aminex website (www.aminex-plc.com) in the
Ntorya-2 Appraisal presentation which is being released concurrently with this
announcement.
Ends