Monday, 5 February 2018

Malcy on Aminex CPR Uprade from 1.34tcf to 1.87tcf


Aminex

A significant resource upgrade today from RPS which is way better than had been expected. This and other data from io, confirms the feasibility of developing the Ntorya gas field for commercial production. The Ntorya Pmean GIIP is increased to 1.87 TCF, an increase of 44% on managements latest estimates (1.3 TCF) and 12x the previous CPR. The 2C gross contingent resources number is up 11x from previous CPR at 762.8 BCF.


These numbers significantly exceed management’s expectations and without doubt put its acreage in Tanzania on the highest quality footing for the future. As a substantial player in country Aminex can expect to be able to proceed with limited upfront expenditure and use revenues ‘to enable cash-flow funded further development’, in what is a now realistic and achievable proposition. Aminex has now for once and for all become of significant strategic importance to the Tanzanian economy even if that means getting infrastructure funding for the pipeline.

With a highly supportive cornerstone shareholder encouraging the highly qualified and entrepreneurial management, shareholders can look forward to an exciting run in Tanzania and now that executive time can be spared it would come as no surprise to see some geographical expansion for Aminex. Even after the 18% rise at time of writing I consider that the shares should at least head back to highs achieved only a year ago.
Source. Malcys Blog