Oil exploration and production company Aminex (LON:AEX) recently announced that during the production testing on the recently drilled Ntorya 2 appraisal well, no formation water was produced, leading the company to conclude that the area contains a significant volume of gas.
Jay Bhattacherjee, CEO of Aminex said: “The overall results of Ntorya-2 have substantially exceeded Aminex’s expectations and now we have the potential for a commercial development project in the Ruvuma Basin. Ntorya-2 is currently being suspended for future production. Further analysis of the well results is ongoing and we will keep shareholders informed of progress.”
He added: “Despite the measures we had to take to control the well during drilling, due to a large gas influx in the reservoir section, the Ntorya-2 test clearly supports our belief that there is a considerable gas basin to be exploited in our Ruvuma onshore acreage which we are looking forward to developing. This project should ultimately be of immense benefit to the Tanzanian economy and is an excellent result for our patient and supportive shareholders and all other stakeholders.”
Aminex will now complete a full analysis of all technical data prior to applying for a 25-year development license over the Ntorya appraisal area.
Ntorya-2 was drilled in the onshore Ruvuma Basin of southern Tanzania, on the Mtwara Licence (Aminex 75%, operator) that is governed by the Ruvuma Production Sharing Agreement.
In an exclusive interview with TanzaniaInvest in July 216, Bhattacherjee explained that Aminex does not have the financing needed to develop Ruvuma and that the appraisal was needed first.
“After we have the gas volume approved, we’ll decide what to do: dive into the project with financing investors, or raise the bank finance necessary to continue”, Bhattacherjee concluded.