Aminex (LON:AEX) and Solo Oil (LON:SOLO) have revealed that an independent assessment has identified a potential 4.7 trillion cubic feet (tcf) of gas within the Ruvuma project, onshore Tanzania.
The new competent person's report (CPR), provided by independent consultant Senergy, made the estimate, which is defined as ‘mean gas initially in place for discovered and undiscovered resources’.
Senergy identified 153 billion cubic feet (bcf) of gas in place for the Ntorya 1 discovery, which is located in the Ruvuma PSA; some 70bcf of has booked as contingent resources for the project.
Significantly, the CPR upgraded the partner’s four main leads – Ntorya Updip, Namisange, Likonde Updip, Sudi - which together account for three trillion cubic fee (tcf) of gas in place and are now deemed to be ‘drillable targets’.
According to Senergy the basin remains significantly under-explored and there is still further potential in various plays.
Today’s CPR also defined 44bcf of gas at the Kiliwani North Development Licence, where the partners are currently advancing to first production.
Kiliwani also now has some 28bcf of booked contingent resources, which upon receipt of a gas sales agreement from the Tanzanian authorities, are expected to ne upgraded to reserves.
Jay Bhattacherjee, Aminex chief executive, said the CPR takes the partners a step closer to realising Ruvuma’s “considerable potential” and is a validation of the recently conducted technical work.
“The classification of Ntorya 1 as contingent resources establishes a second potential development asset within the company,” he said in a statement
“With the recently completed pipeline and new industry developing in proximity, we will now undertake an evaluation of the development options for this asset.
“Combined with the commencement of production at Kiliwani North, which should allow the company to book its first Tanzania gas reserves, we are entering into a very exciting time for Aminex."
Solo Oil chairman Neil Ritson, meanwhile, added he was “extremely pleased” that the independent analysis had confirmed contingent resources at Kiliwani North and Ntorya as well as what he described as “considerable upside”.
“We look forward to the commencement of gas sales at Kiliwani and to the announcement of further plans to appraise the Ntorya gas condensate discovery,” Ritson said.
“Tanzania represents a major part of our portfolio and we are excited by the potential it represents."
Solo Oil owns 25% of the Ruvuma assets and currently has 6.5% of Kiliwani, though it has an agreement in place allowing it to acquire a further 6.5% for US$3.5mln after a GSA is signed.
Aminex is the operator of both projects and it owns the remaining the project equity.