Aminex (LON:AEX), as it awaits first gas in Tanzania, says it is advancing plans for appraisal drilling on the Ntorya discovery.
Chief executive Jay Bhattacherjee, in today’s half yearly results statement, said he looked forward to positive updates Aminex advances its key assets in Tanzania.
Sealing a gas sales agreement is now the last hurdle for Aminex before it can start producing gas from the Kiliwani North field. The agreement is said to be in the final stages, and the company is now finalising clauses for payment protection and guarantees before signing.
Together the existing Kiliwani 1 and Ntorya 1 wells have been assigned, by a competent persons report, some 98bn cubic feet of contingent gas resources.
Appraisal drilling, two proposed wells on Ntorya, can potentially deliver additional volumes and advance the development of the potentially larger field. The programme may also deliver additional near term revenues, the company said.
“The signing of the Kiliwani North Gas Sales Agreement, expected in the near future, should also assist the acceleration of the company's other activities, particularly appraisal drilling at Ntorya,” Bhattacherjee said.
“Your Board believes that the steps we are taking will be significant for the growth of the company and underline its strategy to focus on key assets in Tanzania, ever seeking new production and development opportunities.”
Elsewhere in Tanzania the company had approval from the Tanzanian authorities to defer drilling obligations for the Nyuni area.
In terms of its financial results Aminex reported a US$606,000 loss for the six months to June 30.
During the period it raised US$2.45mln through an equity issue. And the company is in ongoing talks with financial institution for development capital for Ruvuma and a possible restructuring of debt.