Excitement is building over pending test results from the successful Ntorya-2 appraisal well in Tanzania.
Aminex plc (LON:AEX) and Solo Oil PLC (LON:SOLO) earlier this month announced that Ntorya-2 was success and the initial findings were better than expected.
Results from the subsequent flow testing programme are now anticipated soon.
Roll on next week and week after for the big flow test for @SoloOilplc and @AminexPLC. That's my guess on timing knowing the oil biz.
— David Lenigas (@DavidLenigas) February 16, 2017
The Ntorya-2 well was drilled to a depth of 2,750 metres and encountered 51 metres of gross gas bearing reservoir, with net pay interpreted to be between 25 and 30 metres.
For context, the prior Ntorya discovery well - located some 12 kilometres away – encountered a 25 metre gross interval, of which a 3.5 metre section was perforated and tested.
Aminex said drilling in the reservoir section was associated with associated with significant gas influxes and higher than expected pressures.
Craig Howie, analyst at stockbroker Shore Capital, in a note earlier this month, said the well result is an excellent outcome that de-risks the project considerably.
“With a thick, high quality reservoir indicated, we anticipate a material upgrade to our 3.9p/share risked net-asset value (NAV) estimate and look forward to incorporating the final results from Ntorya-2 into our valuation following the completion of evaluation work including well testing in the short term,” Howie said in a note.