Aminex: From Acorn to Oak – Chapter 8: Farm-out & Transformation

From survival mode to a funded path to production

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By 2018, Aminex had drilled two successful Ntorya wells, proving the Ruvuma basin’s scale. The problem was simple but stark: how could a junior with a stretched balance sheet fund a multi-hundred-million-dollar development?

The answer arrived in July 2018, when Aminex struck a farm-out agreement with ARA Petroleum Tanzania (APT), part of the Zubair Corporation of Oman. Under the deal:

• ARA would acquire 50% and take over operatorship.

• Aminex would retain 25%.

• Solo Oil continued to hold 25%.

The deal was approved by shareholders in early 2019, and completed in October 2020 after the long list of Tanzanian approvals was ticked off. For the first time in years, Aminex wasn’t scrambling for cash — it had a partner with the capital and the will to deliver.

The terms were transformational. Aminex secured:

• A $35 million carry through to production — meaning ARA would fund the development work while Aminex kept its 25% interest.

• Once gas flowed with the field under development, Aminex’s net cashflow was expected at $40 million per annum, without having shouldered the development costs.

For a company of Aminex’s size, it was nothing short of a lifeline. The burden of raising capital was lifted. The constant worry about dilution was gone. For the first time, Aminex could look forward with clarity: fully exposed to production upside, but without the crippling cost of building the project.

Meanwhile, the ownership picture shifted again in 2022, when Solo Oil (by then Scirocco Energy) exited Tanzania. Its 25% stake in the Ruvuma PSA was acquired by ARA, giving the operator 75% and leaving Aminex steady at 25% non-operated interest.

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For investors, the farm-out was the moment Aminex’s survival story became an investment story again. Years of scraping by on placings and hope were over. The company was now free-carried into production on a field with billion-cubic-foot potential — a rare position for any junior in the sector.

➡️ Next time: Chapter Nine — Seismic & Scale-Up. With 3D seismic acquired and interpreted, Ntorya’s potential leapt from hundreds of billions of cubic feet into multiple trillions, redefining the project as Tanzania’s largest onshore gas development.

Aminex: From Acorn to Oak – Chapter 7: The Ruvuma Basin Story

Ntorya’s promise and the wells that proved it

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If Kiliwani North was Aminex’s proof of concept, the Ruvuma basin was always the real prize. Stretching across southern Tanzania and into Mozambique, this frontier play had the scale to change the company’s future — if it could be unlocked.

The first breakthrough came in 2012 with the drilling of Ntorya-1 (NT-1). The well flowed at around 20 MMcfd of gas, with light condensate. For the first time, Aminex had a discovery of material size — one that could support development rather than just prove hydrocarbons existed.

Five years later, in 2017, the partners drilled Ntorya-2 (NT-2). This wasn’t just a repeat exercise — it was confirmation. NT-2 flowed at rates above 17 MMcfd and extended the known limits of the reservoir, it even brought the excitement of oil shows in the mud cuttings! With two wells delivering strong results, independent assessments began to point to hundreds of billions of cubic feet, and potentially over a trillion cubic feet, of gas in place.

For Aminex, NT-1 and NT-2 were transformational. Together they showed that Ruvuma wasn’t a marginal basin — it was one of East Africa’s most exciting undeveloped gas assets. But success brought a new problem.

Big discoveries demand big money. Building a processing plant, drilling more wells, and laying a pipeline to Madimba would cost hundreds of millions of dollars. For a junior like Aminex, already stretched by years of exploration, that scale of capex was impossible to fund alone.

It left the company at a crossroads: hold onto the prize and risk running out of money, or bring in a heavyweight partner with the resources to carry it forward..

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The Ntorya discoveries proved the potential. The next challenge was to secure the funding and expertise to turn them into production.

➡️ Next time: Chapter Eight — Farm-out & Transformation. We’ll follow how Aminex brought in ARA Petroleum, secured a $35m+ free carry, and positioned itself for a share of future cashflow without the burden of development costs.

Aminex Turns the Corner: Tanzania's Largest Onshore Gas Field Enters Construction Phase

Government Support, Strategic Partnerships & Imminent First Gas Position Aminex as a Long-Term Growth Play

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🚧 Boots on the Ground: Construction Has Begun

Aminex has officially entered the construction phase of the Ntorya Project—Tanzania’s largest onshore gas development. It’s a major step forward for the company and a defining milestone for Tanzania’s energy future.

“This project is of national importance,” says Executive Chairman Charles Santos.
“It’s a path to sustainable growth for Aminex and long-term economic benefits for Tanzania.”

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Strategic Position in Tanzania’s Energy Landscape

Aminex is one of the few listed companies with deep roots in Tanzania’s energy sector. The company entered the country in 2002 and was behind the first gas-to-power delivery from Songo Songo Island in 2016. Now, with the Ntorya gas field, Aminex is again at the center of a high-impact development.

“There’s only one other listed company with our Tanzanian focus,” Santos notes.
“That offers a unique opportunity for investors seeking direct exposure.”

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🤝 ARA Partnership: A Game-Changer

Following financial restructuring and strategic repositioning, Aminex completed a farm-out in 2020 to ARA Petroleum Tanzania, which now holds 75% and operates the Ntorya field. Aminex retains a 25% interest but is fully carried through $140 million of project costs, significantly de-risking its position.

“The project has been sufficiently de-risked,” says Santos.
“We’ve got a 25-year development license, and government funding is in place for the pipeline. We’re approaching revenue.”

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💡 Project Momentum: What’s Already Done?

• ✅ EPC contract awarded to two Chinese engineering firms (CPP & CPTDC)

• ✅ Pipeline mobilisation starting September 2025, construction kicks off January 2026

• ✅ First gas expected July 2026, Aminex revenue begins ~1 month after

• ✅ NT-2 well already ready for hook-up, with NT-1 and CH-1 to follow

• ✅ Initial production of 60 mmcf/day, ramping up to 140 and then 280 mmcf/day in phases

• ✅ Government has approved funding and support, signalling long-term commitment

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📈 Scale and Geology: East Africa’s Largest Onshore Gas Find

The field spans over 300 km² and is estimated to contain 3.45 trillion cubic feet of gas in place.

“We expect to recover 75% of that over 35 years,” says Technical Director Tom Mackay.
“That aligns with our license and gives us an incredibly strong, long-term cash flow profile.”

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⚡ Why Ntorya Matters to Tanzania Now

Tanzania faces a chronic electricity shortfall. While offshore projects are years away, Ntorya offers immediate, onshore, cost-efficient gas—perfect for power generation and industrial growth.

“Tanzania needs gas now—not in five or ten years,” says Santos.
“Ruvuma fills that urgent niche.”

The government’s commitment is evident:

• 🏗️ Fully funding pipeline infrastructure

• 📜 Committed through TPDC’s back-in rights

• 🔁 Working to accelerate drilling approvals and regulatory support

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💬 Aminex Outlook: From Survival to Sustainability

In 2020, Aminex was on the edge—struggling with declining production, paused deals, and COVID-related delays. But fast forward to today, and it’s a different story:

“We’ve survived the hard part,” says Santos.
“Now we’re on the road to stable cash flow and long-term growth. Aminex is back.”

With over $200 million already invested in Tanzania, Aminex is poised to start generating revenues within a year. Once cash flow starts, the company plans to:

• Revisit its Kiliwani asset (potential 3D seismic and reactivation)

• Renegotiate and reshape the Nyuni Area licence

• Continue expanding Ruvuma’s output and infrastructure

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🧠 Investor Takeaway:

• ✅ Construction is now underway

• ✅ Revenue expected Q3 2026

• ✅ Long-term licence with major gas reserves

• ✅ De-risked by carry structure

• ✅ Supported by government infrastructure and policy

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🚀 Final Word from the Chairman

“We’re very optimistic. This is no longer a ‘potential’ story—it’s execution now. Our future is production, revenue, and long-term impact.”

Aminex Gears Up for 2026 Gas Production with Pipeline, CPF & Drilling Momentum

Key infrastructure moves from planning to action as Ntorya gas strategy accelerates

Aminex PLC is entering a transformational phase in Tanzania’s Ruvuma Basin as construction and drilling preparations advance toward first gas in 2026. With the full backing of the Tanzanian government and TPDC, the Ntorya development is finally gathering visible momentum—offering long-term value upside for shareholders.

🚧 Pipeline & CPF: A 30 km Link to Market

The 30-kilometre gas pipeline connecting Ntorya to the Madimba Gas Plant has been awarded to industry heavyweight China Petroleum Pipeline Engineering (CPPE), with equipment from CPTDC.

• Mobilisation begins: September 2025

• Pipelaying window: January to July 2026

• Project completion: By July 2026

The Central Processing Facility (CPF) will be built at Ntorya, ensuring direct feed into Tanzania’s national gas infrastructure.

For context: a 30 km pipeline is modest in scale for CPPE, which routinely handles 500+ km builds globally. This adds further confidence in timeline discipline.

🛠️ Drilling Plans: Rig Options & Timeline

Following PURA’s approval of the rig tender strategy in August 2025, the operator ARA Petroleum has already issued Expressions of Interest (EOIs)—ahead of schedule.

Candidate rigs include:

• Exalo Rig 202 – active in Zimbabwe; likely available late 2025 after Invictus campaign

• PR Marriott rigs – currently in Kenya

• Nabors rigs – in Uganda

• ARA’s own Oman-based fleet – with three active rigs that could redeploy within 3+ months

🎯 Drill Timing:

• Optimistic spud: December 2025

• More likely: January–February 2026

🌍 Government Support + Investor Upside

With a 25-year Development Licence in hand and the full cooperation of Tanzanian authorities, Aminex stands to benefit from:

• Favourable PSA terms

• 50% annual cost recovery from production revenues

• Strong local partnerships through TPDC and regional contractors

📊 Resource Potential: Strong Base, Big Upside

• Certified 2C net reserves: ~0.4 Tcf

• Full basin potential: Estimated 16+ Tcf, with up to 4 Tcf net to Aminex

• Condensate uplift: Up to +15% revenue enhancement

• Oil shows at Ntorya-2 add further exploratory upside

🎨 What’s Next on the Blog

Expect regular updates with simplified graphics, clean infographics, and clear investor messaging. We'll track:

• Pipeline milestones

• CPF progress

• Drilling mobilisation

• Project economics and PSA mechanics

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🔎 Bottom Line

The pieces are falling into place. Aminex is closer than ever to unlocking substantial long-term value at Ntorya—and 2026 is shaping up to be the inflection point.

Stay tuned for more updates as we track every move toward first gas.

Aminex: Rig Strategy and Options for the Ntorya Drilling Campaign

From regional workhorses to ARA’s own fleet, what rigs could deliver the next phase at Ntorya — and when might they spud?

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1. Why the Rig Choice Matters

With pipeline construction equipment due to mobilise this month and the Ntorya gas field poised for its next stage of development, investors are rightly asking: when will the next well be drilled, and which rig will do the job?

The answer lies in the rig tender now under way. PURA has approved the strategy, ARA has invited expressions of interest, and a range of options are now on the table.

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2. Regional Candidates

Several rigs already in East and Southern Africa meet the technical requirements for CH-1 and the NT-1 workover (~1,000–1,500 HP, ~3–4 km depth capability):

• Exalo Rig 202 – currently warm-stacked with Invictus Energy in Zimbabwe. Its two-year extension (signed Dec 2023) suggests availability by late 2025, aligning neatly with Ntorya’s timeline.

• PR Marriott rigs (Kenya) – long track record with Tullow and active in East Africa. A credible bidder with mobilisation experience across the region.

• Nabors rigs (Uganda) – working with Total and CNOOC on Tilenga/Kingfisher, these are world-class units that may rotate out as Ugandan projects mature.

• Chinese rigs – subsidiaries of Sinopec and CNPC often respond to tenders in the region; they can field suitable units if scheduled availability matches

It’s also possible that a Chinese drilling rig could ultimately be selected. With CPPE and CPTDC already trusted to deliver the pipeline, and China’s wider history of energy infrastructure in Tanzania, investors may wonder if this confidence extends to drilling services too. While the pipeline award does not automatically link to a drilling contract — these are separate scopes of work — the idea of a CNPC or Sinopec drilling unit entering the tender is credible. If it happened, it would underline Tanzania’s comfort with Chinese delivery capacity, while still leaving room for strong competition from Exalo, PR Marriott, Nabors, and others.

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3. The ARA Oman Option

ARA Petroleum also operates a fleet of rigs in Oman. In May 2025 they were running three concurrent rigs in Block 44. If Omani operations wind down, ARA could redeploy one of their rigs to Tanzania.

• Pros: Full operator control, proven rigs, known crews.

• Cons: Requires demobilisation, shipping to Mtwara, and land transport inland — at least 3+ months lead time.

While speculative, this option demonstrates ARA’s flexibility if regional rigs cannot be secured in time.

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4. Timing — December or Early 2026?

• December 2025: Possible if a regional rig (e.g., Exalo or Marriott) is freed quickly and mobilisation is fast-tracked.

• January–February 2026: More realistic if tendering, contracting, and mobilisation take their usual course.

• Alignment with pipeline: Either way, spudding before or during the early pipeline construction phase ensures CH-1 and NT-1 can contribute volumes once first gas flows in mid-2026.

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5. Why Investors Should Be Confident

• Multiple credible rig pools exist within East and Southern Africa.

• ARA has its own fleet as a fall-back option, underscoring their commitment.

• Timelines align with pipeline completion in July 2026 — ensuring gas can move to market.

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📌 Closing Line:
“The next well at Ntorya is not a question of if, but when. With regional rigs available, ARA’s Omani fleet as a fall-back, and Tanzania’s regulators moving the process forward, the spud window is now clearly in sight — whether as early as December 2025 or into early 2026.”

Aminex Update: Pipeline Procurement Underway and Rig Tender Process Accelerates

Following yesterday’s RNS, new disclosures confirm Expressions of Interest for rig services have already been issued — ahead of schedule.

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Yesterday’s RNS: Two Key Milestones

On 27th August, Aminex released an RNS confirming significant operational progress at Ntorya:

• Pipeline:

  • Contractors have begun procurement of pipe and equipment for the 35 km Ntorya–Madimba pipeline.

  • Mobilisation of construction equipment is scheduled for September 2025.

  • Groundwork and pipelaying are due to start in January 2026, with completion by July 2026.

• Rig Tender:

  • The Petroleum Upstream Regulatory Authority (PURA) has approved the tender strategy for a drilling rig.

  • This approval enables drilling of Chikumbi-1 (CH-1) and a workover of Ntorya-1 (NT-1).

  • The RNS stated that Expressions of Interest (EOIs) from service contractors would be requested next week.

• Condensate Discussions:

  • TPDC, APT, and Aminex also discussed the processing and storage of condensate, highlighting an additional revenue stream beyond gas sales.

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Today’s Update: Ahead of Schedule

Less than 24 hours later, it has been confirmed via today’s release on X (formerly Twitter) that the Expressions of Interest have already been issued, a full week earlier than suggested in the RNS.

This over-performance signals:

• Strong operator momentum from APT.

• A clear alignment with Tanzanian regulators and stakeholders.

• A demonstration that the project is moving faster than timelines originally set out.

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Why This Matters for Investors

The combination of pipeline procurement, firm groundwork dates, and now the early launch of the rig tender process creates visible momentum on all fronts:

• De-risked schedule: Procurement and mobilisation show the pipeline is firmly on track.

• Accelerated rig contracting: The early release of EOIs means CH-1 and NT-1 are moving closer to execution.

• Additional upside: Condensate monetisation discussions could provide another layer of value.

This update underscores the Government of Tanzania’s and APT’s commitment to delivering Ntorya gas to the Madimba plant on time — and potentially even ahead of schedule.

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Closing Thought

Investors have long waited to see Ntorya move from planning into visible execution. With procurement underway, mobilisation imminent, and the rig tender already advancing faster than expected, that moment has arrived.

The project is not just progressing — it is gathering pace.

Aminex Ara Breaking Ground: Ntorya Moves Closer to First Gas

Visible steps are aligning as infrastructure, wells, and regulatory milestones converge toward production.

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A Project Now in Motion

The Ntorya development in southern Tanzania is advancing step by step toward its goal of delivering gas into the national grid via the Madimba pipeline. With approvals secured, funding confirmed, and procurement of facilities under way, the project is steadily progressing along its critical path.

Investors are understandably keen to see “hard evidence” — rigs mobilising, welders on the pipeline, or CPF construction above ground. Those milestones are coming, but there is already much happening that gives confidence in the journey ahead.

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Upcoming Milestones: The Roadmap Ahead

1. EPC Contract Awarded

The Engineering, Procurement, and Construction (EPC) contract for the 35 km pipeline has been officially awarded to China Petroleum Pipeline and China Petroleum Technology & Development Corporation. This ensures the pipeline’s delivery is now in the hands of experienced international contractors.

2. Pipeline Fully Funded

The pipeline construction is being fully financed by TPDC, the national petroleum corporation. This reduces financial risk for the operators and demonstrates the Tanzanian government’s strong commitment to bringing Ntorya gas to market.

3. NT-2 Extended Well Test & CPF Integration

NT-2 has been identified as the first producing well. An extended well test will confirm reservoir behaviour and fine-tune the CPF’s design specifications. Importantly, this does not delay CPF construction — procurement and enabling works can proceed in parallel, with the test results helping optimise the final equipment setup.

4. PURA Approval for Rig Tender

The regulator, PURA, is reviewing rig tender plans. Approval of this plan is a milestone in itself, as it enables the operator to issue the formal rig tender.

5. Rig Award and Mobilisation

Once the tender is awarded, a drilling rig will be mobilised. Its first task: drill CH-1 (Chikumbi-1). The same rig will then conduct a workover of NT-1. This is a crucial step in adding redundancy and ensuring multiple wells can feed into the CPF and pipeline.

6. CPF Civil Works and Site Preparation

The approved US$41 million budget includes the CPF, flowlines, manifolds, and fiscal meters. While there has been no formal announcement of CPF mobilisation, satellite imagery in the wider Ntorya area shows ground activity that could indicate early site preparation. This should be regarded as an educated observation, not official confirmation.

Such early groundwork is entirely consistent with the development sequence — clearing land, preparing foundations, and creating storage areas typically begin before heavy equipment arrives, ensuring a smooth transition into construction.

7. First Pipeline Welds

The first welds on the pipeline right-of-way will provide unmistakable, visible proof of progress. This is one of the clearest signals investors can look for as the project enters the physical build stage.

8. First Gas Flow

All of these steps lead to the same target: the delivery of 40 MMscf per day under the Gas Sales Agreement in the first contract year, with capacity to grow further.

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Investor Takeaway

Milestone	What It Demonstrates
EPC awarded	Contractors in place, work authorised
Pipeline funding by TPDC	Full state backing, no financial burden on operator
NT-2 extended test	Optimises CPF design, not a blocker
PURA approval for rig tender	Regulatory progress, green light to issue tender
Rig award & mobilisation	Visible drilling and well activity
CPF enabling works	Site preparation under way, consistent with plan
First pipeline welds	Physical build begins in earnest
First gas	Contracted supply of 40 MMscf/d delivered

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Conclusion

Ntorya is progressing through a clear sequence of milestones. Some are less visible than others, but each is a step toward first gas. With the pipeline EPC awarded, funding secured, and wells prepared for development, the project is firmly moving forward.

The next stages — rig mobilisation, CPF civil works, and the first pipeline weld — will provide the visual proof that investors are waiting for. From there, Ntorya transitions rapidly from preparation to production, with 40 MMscf/d contracted under the GSA and a scalable pathway for growth.

Ntorya Aminex ARA First Gas: Pathways to Production

How multiple wells and facilities could support the journey to first gas at Ntorya.

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A Project Moving Forward

The Ntorya development in southern Tanzania continues to progress toward its goal of delivering gas into the national grid via the new 30 km pipeline to Madimba. With approvals, budgets, and land acquisition in place — and procurement of key facilities already under way — the project is steadily advancing along its critical path.

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The Role of NT-2

Public updates to date have consistently named NT-2 as the first well scheduled to deliver gas into the new system. Flowline rights of way have been secured, and the well is expected to be ready in line with pipeline completion.

NT-2’s early contribution would demonstrate that the infrastructure works as designed and confirm the start of Ntorya’s commercial life.

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Beyond NT-2: The Next Wells

While NT-2 is the immediate focus, there is a broader plan:

• CH-1 (Chikumbi-1): a new well to be drilled with a conventional rig.

• NT-1 Workover: returning one of the earlier discovery wells to production using the same rig once CH-1 is complete.

Land has already been acquired for the CH-1 pad, and all tubulars and wellhead equipment are ready. Regulatory agencies have indicated that they want the rig tender expedited — underlining the importance of getting CH-1 and NT-1 online quickly after NT-2.

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Processing Facilities and Flowlines

The approved US$41 million development budget includes:

• The Central Processing Facility (CPF) at Ntorya,

• Flowlines and hook-ups for NT-1 and NT-2,

• Gathering manifolds and fiscal metering.

This confirms that full upstream facilities are part of the current phase — not just temporary or mobile systems.

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Looking at Possible Scenarios

Based on information released so far, there are several possible ways the project could unfold:

1. NT-2 First Gas – As officially stated, NT-2 comes online first, delivering initial volumes into the CPF and pipeline.

2. Reinforcement from CH-1 and NT-1 – These wells follow rapidly, ensuring that contractual volumes are comfortably met and sustained.

3. Parallel Build-out – NT-2 begins the process, while CH-1 and NT-1 are accelerated to underpin production, giving the field multiple producing sources from an early stage.

All three scenarios lead to the same outcome: Ntorya gas flowing into the Madimba plant and on into the national grid.

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Why This Matters for Investors

For investors, the key message is that Ntorya is not reliant on a single well. The project is structured with multiple paths to delivery, a fully funded facilities budget, and strong government support for expediting the programme.

Whether first gas flows solely from NT-2 or from a combination of NT-2, CH-1, and NT-1, the end result is the same — a producing gas field with infrastructure in place and a guaranteed market under the Gas Sales Agreement.

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Closing Thought

Ntorya’s journey to first gas is not a straight line but a set of carefully managed options. That flexibility is a strength, giving the operator and Tanzania’s energy system more than one way to reach the finish line.

For investors, it is reassurance that the project has the resilience and scope to meet its commitments and deliver on its long-term promise.