Aminex plc (LON:AEX) has a “number options available” as it looks at early production and monetisation from its Ntorya gas project in Tanzania, chief executive Jay Bhattacherjee told Proactive Investors.
On Thursday the company said it is prioritising the preparation of a development plan for Ntorya, and it is looking to monetise gas as quickly as possible.
The company is working with the Tanzanian authorities as it advances plans for a suitable early production systems.
In an interview with Proactive Investors, Bhattacherjee explained that Aminex has options to make money locally before a larger gas field development to feed Tanzania’s national gas network.
“We’ve got quite a few options available to us,” he said.
“Ultimately we’ll be putting gas into the national pipeline, but, there’s quite a local demand for that gas, there’s quite a few mines around the area and there’s quite a few local businesses and there’s a few things we can do.”
Bhattacherjee highlighted that local gas-to-power or compressed natural gas (CNG) are possible avenues for early revenues.
He added that negotiations are already underway for possible gas sales, or ‘off-take’ deals, but, the immediate focus is about the project itself - and what comes after the successful Ntorya-2 well.
“We just finished the testing of the well [Ntorya-2] and we’re quite far down the process of the updated basin model now, which will come out with some new resources numbers and post that we’ll be looking at what are the best options to commercialise the gas straightaway,” he said.
The Ntorya project was boosted massively by the success of the Ntroya-2 appraisal well, which was tested in early 2017 and delivered positive results - an average flow rate of 17mln cubic feet per day.
Elsewhere in Tanzania, the company started up the Kiliwani North production well during July, with the well averaging 15mln cubic feet per day.
"2016 was a transformative year with Aminex achieving first gas production from its Kiliwani North field, the introduction of a strategic investor and spudding the Ntorya-2 appraisal well, which subsequently tested at an average rate of 17 MMcfd,” said chief executive Jay Bhattacherjee.
“The company is now looking forward to developing the resources in the onshore Ruvuma Basin, while gas revenues assist with the early repayment of corporate debt.”
Aminex reported a US$2.53mln loss for the twelve months ended December 31, reduced from US$3.78mln the year before. It generated some US$4.93mln of revenue, up from US$0.35mln in 2015.
In the year, the company raised US$24.37mln through a share placing and open offer, and it ended the year with US$19.5mln of cash and equivalents.