So why was Wentworth's drill not a success for them !!. Well for this well to be commercial it requires 3 major points. *First the reservoir has to be big to ensure it will produce for years. They were hoping to find circa 60m of payzone which would of netted them around 1.6TCF and making that discovery more likely to be viable. However, they only found around a fifth of that which gives us an estimated 320 BCF (rough calc) *Second, the well needs to produce a good flow rate to reduce the amount of expensive wells needed to exploit the reservoir. As we know the reservoirs in this area are fully charged so even with an 11m payload I'm sure the flow rate will be high, so no problems there. Third is Infrastructure. If they had hit their 1.6 TCF target then it may of been enough to run a small factory or power plant but the remoteness of this drill would of ruled out a pipeline. However, 330bcf is not enough for such a wildcat drill in my opinion and it will be most likely plugged and abandoned. If they'd of found crude oil of course then the mathematics for viability would of been spun around. They did not even mention any oil shows, although there was a small amount of condensate present.
So why was this result good for Aminex. Well it was fantastic because it proves how widespread the gas is onshore and almost de-risks the southern extremes of our block. It also highlights exactly how lucky we are having a huge Chinese pipeline just being built on our doorstep. It literally rampages through all our onshore acreage which is an absolute gift. Had Wentworth's well been drilled close to our pipeline, there is no doubt that it would of been a commercial discovery. So all future wells we drill will have a direct route to market with just the need for a small link pipeline. We do know that Jay is looking beyond this and hoping to build a gas hub around our Ntorya discoveries to feed the industry in Mtwara. This would be a master-stroke by providing us with a revenue stream 3 times that of supplying power plants, but that's another story.
So the less onshore competition we have the better, as it provides us with a much stronger bargaining position in the market of supply and demand. The offshore gas will never threaten us as their overheads are so high and will therefore only be used in LNG projects.
We have huge amounts of gas reserves, massive flow rates, the largest condensate discovery in Tanzania, vast amounts of acreage to further exploit and a Chinese pipeline to commercialise our discoveries.
From Wentworth ADVFN ; e-mail from MD Dear Mr. King: Thank you for your email. As indicated in the RNS we did encounter gas and condenate in the Cretaceous and had 11 meters of net pay. What we don't know at this stage is whether the discovery is commercial. The next step is for Anadarko to finish its evaluation of the information obtained from the well in order for the Partners to assess this discovery. If it is considered commercial then the Parters will agree a work program to further evaluate the discovery. I don't have a timeframe for completing this at this time but we will keep the market informed as things progress. I hope this helps. Please don't hesitate to contact me if you have any further questions. Regards, Geoff Bury
Maybe they just don't have all the results info they need and its better to release no news than poor news. As for the PR side of things, Aminex selected Yellow Jersey to do their PR back in May 2014, So how exactly are they earning their bread and butter? Have they release even 3 pieces of information for Aminex so far?
Great point Mike - whatever has happened to Egypt? I thought we were expecting logging results by now? I know we only have a minority interest in that particular asset but are still entitled to an update.
They need to learn a thing or two about positive spin and the world of PR in my opinion. U.S. investors have been very patient over the years. Question what happened to the idea floated by Jay that they were looking to buy into a project in Africa. What happened to Egypt and the results there?
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