The news that gas is flowing to surface at Aminex plc (LON:AEX) and Solo Oil PLC’s (LON:SOLO) Ntorya-2 appraisal well is an ‘encouraging first step’, so says Dublin based broker Davy.
On Monday, the partners provided investors with an update from the well in Tanzania.
Eagerly awaited flow testing results, to determine the commercial merit of the discovery, are due in the coming weeks.
Aminex and Solo Oil this afternoon told investors 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.
“The well will be tested with a variety of flow rates and choke sizes to determine the optimal deliverability of the well for production purposes,” Aminex said in a statement.
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.”