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Aminex PLC News and Opinion
Wednesday, 28 June 2017
8th March - Decoding the “significant success” reported by Aminex and Solo Oil
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| Creative Commons Author unknown |
The companies says Ntorya-2 represents a better-than-expected result,
but, both shares are down almost 20% - here, we take a closer look. Proactive investors Jamie Ashcroft attempts
to decode this morning’s announcements and the reasons for the share price
fall.
What was the result?
The Ntorya-2 well is located some 1.5 kilometres from the
original Ntorya-1 discovery well and it has intersected a much larger gas
reservoir zone.
Flow testing was impeded somewhat by technical issues,
nonetheless, the well testing yielded a rate of 17mln cubic feet of gas per
day, which would be 2,833 barrels oil equivalent per day.
"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,” said Aminex chief executive Jay
Bhattacherjee.
Technical problems
The obvious source of shareholder dissatisfaction comes from
the fact that technical problems limited the partner’s ability to fully measure
Ntorya’s production capacity – in fact, Ntorya-2 flowed at a lesser rate than
the previous well (albeit under different operating conditions).
During drilling there was a significant influx of gas into
the well, and as a result the company had to adapt which resulted in
constricted gas flow during testing.
Specifically, Aminex explained that it had to increase the
drilling mud weights due to the “strong gas influxes” so that they could
maintain well control and operate within safety parameters.
Subsequently, the higher than planned mud weights resulted
in reservoir invasion which tempered overall test performance.
The upshot is that the gas flows measured by the appraisal
well do not properly represent the extent of what could be possible at this
well location.
For context, the Ntorya-2 well cut in a much larger pay zone
than the original discovery yet its flowed gas at a lower rate.
The new appraisal well encountered some 51 metres gross
reservoir (34 metres were perforated) whereas Ntorya-1 tested only a four-metre
interval and yielded 20mln cubic feet per day.
Aminex told investors that Ntorya-2 would be suspended for
future production.
The burden of high expectations
When considering the share price response to Wednesday’s
news it is probably important to note that the results were hotly anticipated
and expectations have been building for a number of months.
Speculation frequently coincides with expectation, and as
such trading in Aminex and Solo Oil shares has been brisk in the weeks and
months leading up to the Ntorya-2 well.
Aminex shares, for example, had risen almost 250% - to 6.84p
from 2p - in the three months before today’s well results. Similarly,
Solo Oil shares were up about 180% in the same period.
One could probably deduce then that at least a portion of
Wednesday’s sellers simply closed out speculative trades as the nuanced well
result took momentum out of the shares.
What comes next for Ntorya?
Aminex highlighted that there will now be a period of
analysis, which will guide what happens next.
The partners will have to reconcile the findings of the
Ntorya-2 well and the previous Ntorya-1 data, and in time they’ll likely come
up with a new estimate of the project’s resources.
The presence of oil shows in Ntorya-2, whilst plainly good
news, will also give some more pause for thought. This part of east Africa is
already known to be host to vast gas resources, with major offshore discoveries
providing the basis of significant LNG developments, but, oil discoveries have
been elusive and are something of a holy grail for exploration geologists
studying the area.
Aminex intends to revise the geological model of the onshore
portion of the basin, to account for the apparent evidence that oil is present
in the vicinity of Ntorya.
With the phase of desktop work, the partners will draw
conclusions that will be used for the next programme on work in the field. A
third well will be planned, with the location determined based on the upcoming
assessments
Full article proactiveinvestors
8th March 2017 - Aminex reveals “very significant” Ntorya-2 well results
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
28th February 2017 - Analyst says flowing gas is an ‘encouraging first step’
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Image source: proactiveinvestors
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Eagerly awaited flow testing results,
to determine the commercial merit of the discovery, are due in the coming
weeks.
Aminex and Solo Oil told investors yesterday
afternoon that flow testing began on the Ntorya-2 appraisal well, in Tanzania,
on February 25 and it confirmed that gas is flowing to surface. Results are
anticipated by ‘mid-March’, the partners added.
This morning, Davy analyst Job Langbroek, in a note, said: “We knew from
the discovery well that gas was present, and this latest update confirms that
it is flowing to surface. While much work remains to be done, recovering
hydrocarbons to surface is an encouraging first step
Full article proactiveinvestors
27th February 2017 - Aminex investors need patience! Flow rate details expected from Tanzania in mid-March
Aminex plc
("Aminex" or
"the Company")
NTORYA-2 Update
Further to the announcement of 6 February
2017, the Company confirms that production testing on the recently drilled
Ntorya 2 appraisal well commenced on Saturday 25 February 2017 and gas is
flowing to surface. The well will be tested across a variety of flow
rates and choke sizes to determine the optimal deliverability of the well for
production purposes. The Company now expects to have results of the
production testing and petrophysical analysis by mid-March.
Ends
28th April 2016 - Opening of Chinese-built bridge in Tanzania cements nations’ investment ties
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| Image Source Bongo5 |
A bridge built by Chinese firms in Tanzania at a cost of
$135 million has been formally opened in the country’s commercial capital Dar
es Salaam.28 Apr 2016
Tanzania’s president John Magufuli, who opened the bridge on
19 April, told China’s ambassador to the country, Lu Youqing, that the project
would further boost the country’s economic growth.
China’s state Xinhua News Agency said the bridge, connecting
Kigamboni and Kurasini to Dar es Salam’s central business district, was built
as a joint venture by the China Railway Construction Engineering Group and the
China Railway Major Bridge Group.
According to Xinhua, the 680 metre-long bridge “is the first
of its kind in east and central Africa”. “It is 32 metres wide, has six lanes,
three in each direction, and two pedestrian and cyclist lanes.”
The project, which began in 2012, was jointly funded by Tanzania’s
government and Tanzania’s National Social Security Fund, Xinhua said.
Chinese firms are involved in a number of infrastructure
projects in Tanzania and China is a key long-term investor in the country.
According to the Forum on China-Africa Cooperation, Chinese
investment in Tanzania rose to more than $4 billion in 2014, “almost doubling
the amount in 2013”. The forum said: “The level of investment, up 60% to a
historic high, comes as China attempts to help turn Tanzania into an industrial
hub in the region.”
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