Aminex plc (LON:AEX) and Solo Oil PLC (LON:SOLO) shares have advanced thanks to a major upgrade to the gas resources at the Ntorya project in Tanzania, as part of an independent competent persons report produced by RPS Energy.
It follows the Ntorya-2 appraisal well success and an assessment of well testing. The project’s gas-initially-in-place increased to 1.87 trillion cubic feet, which is 44% more than Aminex’s previous in-house estimates. Compared to the prior independent assessment, the new number represents a 12-fold increase.
Ntorya’s contingent gas resource has now risen to 762.8bn cubic feet of gas, comprising 80.6bn cubic feet of gas that’s described as pending development – to be addressed by the planned initial three well operation.
Validates three well development plan
Two of the three wells have so far been drilled, and the third is due later this year. The gas would be connected to a gas plant located some 33 kilometres away.
“The RPS CPR significantly exceeds management estimates published following Ntorya-2 drilling and testing and also exceeds the company's subsequent upgrade which was reported to shareholders following in-house technical work,” Aminex said in a statement.
Additionally, the consultant assessed the currently producing single-well Kiliwani North gas field where it sees some 30.8bn cubic feet of gas initially in place - some 6.4bn cubic feet has been produced from the site to date, and RPS sees some 1.94bn cubic feet of proven and probable reserves.
RPS also sees 57bn cubic feet of gas initially in place for the Kiliwani South exploration lead.
Aminex owns 75% of the Ntorya project, while partner Solo Oil owns a 25% stake.
A major gas field in a regional market
Neil Ritson, Solo Oil executive chairman, meanwhile, told investors that the resource upgrade supports the view that Ntorya is a major gas field within the regional market, underpinning the development plans for the project.
“The independent verification of our net interest equivalent to over 30 mmboe underlines the significant value of Ntorya within our portfolio,” Ritson said in a statement.
“When taken with the results of the io consulting commercial feasibility study, we are now confident that Ntorya can be economically produced with limited further major capital expenditure.
READ: Aminex advances preparations for new wells onshore Tanzania
“This gives us line of sight to additional revenues and strengthens our ability to monetise our interest at the appropriate time.
Ritson added: “We now look forward to the confirmation that a rig has been secured for the drilling of appraisal well Ntorya-3, and to continued progress on the award of a 25-year development licence for the field."
Aminex shares were up 7.49% changing hands at 3.3p, while the Solo Oil price was up 17.5% to 4.85p.