Shares in Aminex plc (LON:AEX) advanced some 15% on Monday following the release of a major upgrade to the gas resource estimates for the Ntorya project in Tanzania.
The Ntorya discovery is now estimated to have some 466bn cubic feet of mean gas initially in place (GIIP), up from the previous estimate of 153bn cubic feet. The new estimates range from 62bn cubic feet in the more conservative P90 case to 1.13 trillion cubic feet in the P10 scenario.
It follows the successful Ntorya-2 well, drilled earlier this year, with the latest estimates now based upon data from two wells. The estimates do not include any consideration for the adjoining exploration acreage.
WATCH: Ntorya plans 'all leading in a positive direction', says Aminex chief
CLICK HERE: For a daily round-up of all the Proactive news
"A tripling of resources in the Ntorya appraisal area is clearly excellent news for shareholders and partners and highlights that the Ruvuma PSA is a basin that is of national importance for Tanzania,” said chief executive Jay Bhattacherjee.
“We continue to work directly with the government to gear the near-term work programme to fast track production to both local industry and ultimately into the national pipeline."
Aminex also highlighted that it is presently working on a revision to its wider basin model which will factor in the potential presence of liquid hydrocarbons for future wells, including a third Ntorya well.
The company noted that it is in the process of applying for a 25-year development license for Ntorya, and it is working with the Tanzanian authorities to be able to fast-track the project’s production.
Aminex owns a 75% interest in the Ntorya project, alongside Solo Oil PLC (LON:SOLO) with the 25%.
Solo gives its view on Ntorya’s contingent resources
Solo Oil, in a separate statement, said Ntorya could be host to some 186bn cubic feet (BCF) of 2C contingent gas resources, up from a past estimate of 70 BCF.
According to the junior oil and gas company the project’s 3C contingent resources – the ‘high case’ estimate – has also increased, up 230% to 766 BCF from 232 BCF. These are Solo’s own estimates.
"The Ntorya-2 well, in conjunction with the existing well and seismic control, allow a new more confident and upgraded estimate of the gas in place and the associated contingent resources associated with the successful appraisal well,” said Neil Ritson, Solo Oil chairman.
“As a result Aminex is currently applying for a 25-year development licence and is working directly with the Tanzanian Government on means to fast-track gas production."
Shore Cap impressed with ‘important’ Ntorya project
In a note, analyst Craig Howie said: “In our opinion, the flow rates achieved from the Ntorya-2 well were extremely satisfactory, with scope for meaningful improvement once drilling-induced formation damage is removed, and we are similarly impressed by this major resource upgrade.
“The partners are now focusing on fast-tracking production from this important discovery, with Aminex currently applying for a 25 year development licence and updating the basin model to optimise future drilling locations, targeting considerable volumetric upside at Ruvuma (3tcf of gross mean gas-in-place) including important liquids potential.”