Just reading wentworths most recent presentation which states they have 4 wells ready to produce up to 80mcf/d and then it may take them a further 8 months to bump up toward 130mcf/d all being well. So this extends the pipeline shortfall by a greater amount !!
The Chinese have just funded a huge pipeline in Tanzania to transport gas from the South up to the industrialised North. This pipeline can transport up to 750 mcf/d but who is going to supply that gas. Well there are only 2 other companies, apart from ourselves, capable of supplying any gas but more interestingly is the quantity of reserves these companies have. All the other offshore discoveries will not be in a position to pump into this line for at least 5 years and that's if they don't all go for LNG as the offshore overheads would be to expensive. First we have Orca who run the Songo Songo gas field near our Kiliwani discovery. The Songo gas field can only currently supply at circa 60mcf/d but believe they have a possible max output of 190mcf/d with some big investment but that will take time. Next we have Wentworth and partners who have the mnazi bay gas field. They have a current production rate of between 30-50mcf/d but have just signed a GSA to increase that figure up to 130mcf/d from current wells.
So next year when the pipeline goes live there will only be 60mcf/d from Orca and 130 mcf/d from Wentworth = 190bcf of gas with the max input increasing to 320 mcf/d after time when the fields have been expanded.
320mcf/d max input in a 750mcf/d pipeline, so where is the rest coming from. Well in steps Aminex, because these other 2 companies will take a Long time to expand much further. We currently have a 40mcf/d max output from Kiliwani possible and 20mcf/d from Ntorya. However, we can easily expand this by drilling more wells in our Ntorya channel play which is currently being proven up by our CPR. The Tanzanian authorities will be very aware that no other company will be able to expand their production like us to fill this shortfall in pipeline capacity. So I'm sure they will be moving heaven and earth to make sure we get the correct permits and agreements to move our expansion onwards at pace.
The more interesting part is not in short term production but medium term resources. Our Ruvuma block in vast and has already been estimated to contain more the 6TCF of gas with the possibility to increase this figure with more exploration. Our Nyuni acreage is also estimated to contain more than 5 TCF, although much of that is offshore and more expensive to access. However, the Songo field is in comparison very small and only has a maximum blue sky potential to contain 1TCF and the mnazi field a maximum of 1.3 TCF. So our Ntorya prospect alone, is estimated to contain as much as both the Orca and Wentworth complete field estimates. One of our other reservoirs called Namisange is even bigger at circa 2.5TCF.
So in brief what I'm trying to say is Aminex is the only company that can fill the short/medium term production gap for the Chinese pipeline and the medium to long term issue of resource shortage. We have the first mover advantage and minuscule onshore overheads.
where is ! Britain’s BG Group and its partners, Ophir Energy, Exxon Mobil and Statoil plan to invest in a two-train LNG plant in Lindi, according to energy sources. ( lindi ) ! ah I think they mean the lindi bay !
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