Aminex plc’s (LON:AEX) full year results statement reflect a business stepping up, as gas production rises in Tanzania.
Whilst the focus has been on the larger Ntorya discovery, which has been successfully appraised, the group’s current production asset Kiliwani North has seen improved output.
The single-well Kiliwani North field yielded 3.6bn cubic feet of gross production for the year, up from 2.78bn in the preceding twelve month period.
READ: Aminex in talks over partial sale of Ntorya gas project
Aminex generated US$6.63mln of revenue, up 34% from the US$4.93mln in 2016, and, the company said there was some US$6.94mln of owed gross receivables for gas sales which equated to US$2.7mln net to the company. It reported a US$2.27mln loss attributable to equity holders.
The company noted that it repaid its corporate loan in full in June and it ended the year with a cash balance of US$6.23mln.
Ntorya will in time bolster production. The recently drilled Ntorya-2 well tested at arate of 17mln cubic feet per day and the project was estimated to host some 763bn cubic feet of gas.
The project is the subject of partnership interest, with talks taking place with Oman’s Zubair Corporation over a potential farm-out deal as plans for the next well advance.
"The success of the Ntorya-2 well and subsequent technical work has contributed to a substantial increase in the 2C Contingent resource,” said Jay Bhattacherjee, Aminex chief executive.
“The well planning for Chikumbi-1 is at an advanced stage and we are in discussions with the Zubair Corporation for a possible farm-out of part of Aminex's interest in Ruvuma."