Aminex plc (LON:AEX) told investors it is looking to monetise gas from the Ntorya project, on the Ruvuma acreage in Tanzania, as quickly as possible.
The company, in its financial results statement for 2016, said it is prioritising the preparation of a development plan for Ntorya and will submit an application to the Tanzanian authorities for a 25-year development licence.
Aminex added that it intends to identify and drill development wells in the most cost effective manner, and it is continuing work with the Tanzanian authorities as it advances plans for a suitable early production systems.
WATCH: Aminex boss on Ntorya monetisation plans ...
Commercially, the goal is to deliver gas into the country’s national gas gathering system.
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.