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LONDON (Alliance News) - Aminex PLC on Wednesday said it has achieved first gas production from the Kiliwani North project in Tanzania, in which fellow AIM-listed oil and gas firm Solo Oil PLC also has a stake.
Aminex said initial production from the Kiliwani North-1 well started this week and is expected to build to 25 million to 30 million cubic feet of gas per day over the next 90 to 100 days.
"This is a significant moment for Aminex, its shareholders and Tanzania, and is the culmination of a tremendous amount of hard work by all involved. First gas at Kiliwani North marks the transition of the company from developer to producer in Africa and sets us on the path for growth as we begin to generate cash," said Aminex Chief Executive Jay Bhattacherjee
Aminex is the operator of the licence. Its stake is set to fall to 51.75% from 55.575% previously due to the partial disposal of a stake to Solo Oil. That will take Solo's share in the licence up to 10%.
"Solo is delighted to see its investment in the Kiliwani North project move into production. This is a truly transformational step for the company. Resulting revenues will initially be reinvested in growing our reserves base in Tanzania, a country which has new national gas infrastructure and huge prospects for growth in the local gas market," said Solo Chairman Neil Ritson.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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