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We all know that with CH1 this share will be worth a lot more in a couple of years.
My only significant worry was what was likely to happen in the intervening period. I am more than delighted to get $1.85 million cash from the TPDC. If we can get KN-1 back in production and additional monies flowing then that is sprinkles with a cherry on top.
Gas prices sky high, money in the bank and KN-1 producing revenue, works for me.
yes Ufufuo, it certainly does, if it is the plan, that is with Aminex and the TPDC to get the KN-1 well, re-perforated and cleaned up and back into production ASAP, then the market perception of little old Aminex is going to go through a remarkable change, fingers crossed and all that. im on nights at the mo, i just popped down for a little peek : )
It has opened up a whole new world of possibilities hasn’t it blackgold! Back in production towards the end of spring? Quite possibly
I am all up for AEX doing the rework of KN-1 ASAP, which will then give us company sustaining revenues before we get to the point of having to raise cash. It is obviously a risky endeavour, as they won't know if the rework will work until they do it. If it works and we get the revenues flowing back in, then I'd expect AEX to move ahead with KS-1 plans.
It would not surprise me to see APT come in as farm-in partner for Nyuni real soon, as 4TCF is worthwhile from their perspective, and they will know all about the Tanzania government plans for accelerated LNG, and they will have their teams in the area for an extended period of time starting soon.
APT "ARA Petroleum is a dynamic member of the E&P industry in Oman. The company seeks to explore, appraise and develop oil & gas resources in Oman and internationally."
Kiliwani North 1
(Reservoir and completion schematic)
(Perforate lower zone to potentially access additional gas)
slide 22
http://admin.aminex-plc.com/uploadfiles/Corporate%20Presentation%20Oct%202018.pdf
Kiliwani North-1 operations
"• Pending government approvals, the Company has designed a relatively low-cost remediation project to unload fluid from the well and attempt to re-establish flow to the Songo Songo gas processing facility
• Equipment has been identified in the region and plans are in place to mobilize once approvals are in place"
Kiliwani North Area is highly prospective with:
"• High deliverability reservoirs = Kiliwani North-1 ested 40 MMcf/d "
slide 7-8
http://admin.aminex-plc.com/uploadfiles/Aminex%20AGM%202019%20as%20presented.pdf
Seems to be a lot of gas assets on the market right now in Tanzania.
SCIRS 25% of Ruvuma
SCIRS 8.39% of Kiliwani
AEX Kiliwni and Nyuni?
Could be some new JV partners on the Horizon.
just reading this again, and i would think the agreement for the outstanding receivables to be paid (now) is in line or in conjunction with the other agreements needed for AEX to poceed with the KN-1 remedial work program. so hopefully news soonish on the KN-1 remedial work, yes i think the TPDC wants that gas ?
H/Y Report
"Aminex has prepared a perforation strategy for a lower zone within the reservoir and an alternative remedial work programme intended to establish fluid levels in the wellbore, reservoir pressure and to unload potential fluid using foam treatment."
"The Company is working with the TPDC on agreed methods to handle wellbore fluids which will potentially be unloaded during operations on the well. Agreement and planning will be required prior to undertaking operations, including resolution on the outstanding receivables of US$8.34 million for previous gas sales from KNDL and related late payment interest."
yes Ufufuo, i was about to say re the low cost to perforate the lower zone, and that the risk-reward would favour doing it.
Sorry...should have said 63.8%
I seem to recall that Aminex said fairly recently that, once the amounts payable and approvals were sorted, they could potentially remediate KN1 within about 6 months. Anyone remember where they said that?
It's a relatively low cost remediation plan. Aminex would only need to fund 57.5% of those costs. I believe they've previously said that they've identified equipment in region to do this and the re-perforation.
They have said that they have a plan to do this but it was dependent upon the disputed monies being sorted. The dispute is resolved. So, I expect news before Christmas on plans for Kiliwani.
Exciting times.
don't get me wrong vike, i totally agree with
"This is great news and important for so many reasons, even if the net amount is a touch than some were expecting."
"Will be interesting in the weeks and months ahead to see how AEX approaches next steps. We have a KN1 remediation plan, but our strategy and resources are aligned with being a non-operator. IE, we won't be the ones doing the work."
"Kiliwani is in Songo Songo. We feed into the same processing facility."
there are two processing plants, the old one is owned by Songas, which is fed by the Songo Songo gas field, by 6 or so wells at about 100 mmscfd, and then there is the new processing plant, this one is owned by the TPDC, and has the KN-1 well tide in to it. Orca, a couple of years ago, agreed with the TPDC to supply about 20 mmscfd into TPDC new plant, and that is probably the limit of their/ Orca-Songo Songo field (spair capacity) as they are commited and bound to supply the Songas processing plant, which is being upgraded to to process more gas.
https://www.offshore-technology.com/projects/songosongo/
A joke UT
Kiliwani is in Songo Songo. We feed into the same processing facility.
And yes, of course they explore. They've just discovered so much in the immediate area they haven't had to in a couple years. No one knows that immediate area better than them. To each their own, however.
Nature of Operations
The principal asset of Orca Energy Group Inc. (“Orca” or the “Company”) is its interest in the Production Sharing Agreement (“PSA”) with the Tanzanian Petroleum Development Corporation (“TPDC”) and the Government of Tanzania (“GoT”) in the United Republic of Tanzania. This PSA covers the production and marketing of certain gas from the Songo Songo licence offshore Tanzania. The PSA defines the gas produced from the Songo Songo Gas Field as “Protected Gas” and “Additional Gas”. The Protected Gas is owned by TPDC and is sold under a 20-year gas agreement (until July 31, 2024) to Songas
Limited (“Songas”) and Tanzania Portland Cement PLC (“TPCPLC”). Songas is the owner of the infrastructure that enables the gas to be processed and delivered to Dar es Salaam, which includes a gas processing plant on Songo Songo Island (collectively, the “Songas Infrastructure”).
https://orcaenergygroup.com/2021/08/18/orca-energy-group-inc-announces-completion-of-its-q2-2021-interim-filings/
yes well, I'm not to sure about that one vike, i dont know what land we share, also they're not an exploration company and their main asset is the PSA license of the Songo Songo producing gas field which they manage and also which is due to come to the end of its 25 year term 2025 i think.
vike1,
Good insight. You might be onto something.
This is great news and important for so many reasons, even if the net amount is a touch than some were expecting.
Will be interesting in the weeks and months ahead to see how AEX approaches next steps. We have a KN1 remediation plan, but our strategy and resources are aligned with being a non-operator. IE, we won't be the ones doing the work.
My guess and hope is for a farmout of KN1, KS2, and Nyuni with a partner that's ready to go. My strong preference would be with Orca Energy, since we already share land with them and they have the finances and people on hand.
yes Ufufuo, also this from H/Y Report
"Aminex has prepared a perforation strategy for a lower zone within the reservoir and an alternative remedial work programme intended to establish fluid levels in the wellbore, reservoir pressure and to unload potential fluid using foam treatment."
"The Company is working with the TPDC on agreed methods to handle wellbore fluids which will potentially be unloaded during operations on the well. Agreement and planning will be required prior to undertaking operations, including resolution on the outstanding receivables of US$8.34 million for previous gas sales from KNDL and related late payment interest."
I think it likely that they will remediate Kiliwani and/or farmout Nyuni in the next 12 months. The latter has been signed-off by TPDC and PURA and requires only approval from the new Minister.
"The Company continues to explore the opportunity through remedial work to restart production from our
Kiliwani North well. We, therefore, continue to see value in Kiliwani North through a low-cost remedial work
programme"
hahaha
This is AEX and Tanzania Tom - you cannot guarantee anything! ;0)
Are you guaranteeing dilution then Pete?
Surely there are other ways to raise finance that are non dilutive...
You are right, of course, PoC I do believe the sp will be up after the drill but my comment was in response to edgar's view that AEX will not have a dilution. I simply disagree, I am not commenting on the timing. Yes, if they are to have one have it makes a lot of sense to have it after the drill when it will have minimal impact - but my view remains, we will be having one before "production".
The only way to avoid it is if we can kick start an income from Kiliwani - which is of course a possibility but not without spending money or a "dilution" via a JV.
Anyway I must dash so, finally, bye bye until Monday!