LONDON (Alliance News) - Aminex PLC and Solo Oil PLC Monday said the Kiliwani North-1 well in Tanzania has reached a milestone during the commissioning phase and is now pumping out 30.0 million standard cubic feet per day of gas, equal to around 5,000 barrels of oil per day.
Aminex shares were trading up 10% to 1.10 pence per share on Monday morning whilst Solo shares were up 21% to 0.285 pence.
The pair produced their first gas from the well in April and have now hit their target production level. Previously, the pair were hoping to get production up to 25.0 to 30.0 million standard cubic feet.
Importantly, the pair said production "may increase further over the next several days" as commissioning continues. The commissioning phase is expected to be concluded with the testing of the well to determine optimal rates, which is thought to be around that 5,000 barrel per day mark.
All of the gas produced during the commissioning phase is being sold to the state-owned oil company for USD3.00 per million British thermal units, roughly USD3.07 per million cubic feet. That price is not linked to any commodity price so it will not be affected by current market conditions.
Aminex operates the asset with a 54.527% stake whilst Solo Oil holds a 7.175% stake. Solo Oil is expected to increase that stake to 10% once certain milestones are reached.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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