Aminex plc (LON:AEX) told investors drilling will get underway soon for the Ntorya-2 appraisal well in Tanzania.
It confirmed today that an independent inspection of the contracted drill rig has now been completed and the project is scheduled to start in mid-December.
Ntorya-2 is to be located some 1.5 kilometres from the original Ntorya discovery well, which was at the fringes of the reservoir. The well is designed to test the reservoir up-dip where the feature is believed to be thicker.
The new programme’s second well, Ntorya-3, is currently planned to be a further step-out - it will be 5km from the original Ntorya well – at what has been modelled and seen in seismic to be the thickest part of the reservoir.
Aminex meanwhile continues to produce gas from the Kiliwani North project, also in Tanzania, where it says revenues from gas sales are now established.
The company confirmed that the gas is being sold at US$3 per mln British thermal units. Gas is sold from the wellhead, meaning Aminex doesn’t have to pay for transportation, and the company highlighted that it is a fixed contract which is not linked to changing market prices.
Cash proceeds from production is being used to pay down corporate debts.
Aminex owns a 75% stake in the Ntorya asset and has 54.575% of Kiliwani North.