Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The Tanzanian investment centre list the SCIR deal for $16 million during June 23, close to completion then?
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List the $16 million SCIR deal during June 2023, must be close?
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I know there is some excitement and Rojo keeps banging on about no Rig, but there are 2 crucial points to make here.
1.0 I don't expect that there will be major movement/Rig announcement till post GSA and development licence, both of which are imminent according to ARA and the BOD
· A well-workover of the Ntorya-1 well ("NT-1"), to enable rapid tie-in to the gas production facilities and bring the well into early production requires the use of a drilling rig and remains scheduled to run after the drilling of CH-1.
· The Gas Sales Agreement ("GSA") in respect of the Ntorya Gas Field has now been agreed among the JV partners and the Tanzania Petroleum Development Corporation ("TPDC"). Signing of the GSA will take place upon approval by the Attorney General's Office.
· The Field Development Plan ("FDP") for the development of the Ntorya Area has now been approved by all parties.
· The Development Licence for the Ntorya Area has been approved by all relevant Tanzanian authorities and has been submitted to the Cabinet of Ministers for final authorisation.
As previously announced, the conclusion to the above workstreams decouples the spudding of CH-1 from first gas production and receipt of gas revenues. The re-defining and de-risking of the project materially advances first gas production, which is now expected at the end of 2023. A further announcement on drilling rig arrangements and timings will be made in due course.
2.0 The rig is not required to put the field into production since the decoupling of first gas and CH1 spud.
Morning all, I don't intend rehashing the presentation as it speaks for itself and moreover we didn't actually go through it in great detail with the exception of the seismic data; the 90 minute presentation period was largely taken up by questions from the floor so I will address these as best I can and in some logical order not necessarily the order that the questions were asked. After the formal presentation we all then had circa 45 minutes for face to face Q&A
General:
Most questions regarding Tanzanian administration, timelines and connected conversations answered by Sultan Al-Ghaiti as APT are the operator and are solely responsible for conversations with authorities around Ruvuma. Tom Mackay led the Seismics for Ruvuma with comments from Sultan (who has a drilling background) and also questions (very few) around Kiliwani.
- The Tanzanian Authorities recognise the need and benefit of Gas to their economic development and are keen to speed Ntorya to production.
- Global influences provide the possibility for Tanzania to become an exporter to countries other than those on their border
- ARA works extensively with Tanzanian authorities and finds them both competent and organised leading to progress on a number of areas more quickly than has previously occurred though Sultan Al-Ghaiti (SAG) highlights that they also made progress under the Magafuli Administation
- The Administration is not very experienced in O&G though they are rapidly improving
- Faster progress in Tanzanian is held back by excessive Beaurocracy
- Tanzania is not a recognised OIl and Gas producing country and has minimal existing infrastructure meaning access to such things as resources, expertise and consultancy is hard to find and all requires "importing" - this contributes to delays and uncertainty surrounding timelines and targets (see "pipeline" later)
Ruvuma:
- Good progress has been made on "paperwork" but formal approvals are still awaited
- Whilst not contingent or dependent on each other the future pipeline work and approval / completion of the paperwork are interlinked
- SAG thought that all approvals and paperwork should be completed by end of October if not sooner
- Long lead items are now on site though work not yet materially progressed
- They have identified a suitable drill rig though no rig contract has yet been signed
- SAG stated that he has a personal objective in his capacity as project lead for Eclipse to get the drill in the ground before the year's end
- NT1 and NT2 workovers are expected to provide between 35 - 40 scuffs per day with CH1 contributing another 35
- Anticipated revenues would be circa $1m a month from NT1 & 2 with CH1 delivering a similar amount once on stream
- The new wellhead for CH1 is approximately 2.5 - 3 km's from the original site
- The drilling of the lower Jurassic targets no longer became a priority for the Tanzanian authorities and as it increased operational risk, cost, tim
Morning Crusty, thanks very much for the excellent summary and all very encouraging, especially SAG's comments on paperwork by end October and CH-1 drill before end of year.
Interesting comment around export, are they suggesting that Ruvuma gas may also be exported to non surrounding countries?
Thanks again.
Here you go
CH-1 to be drilled in Q4 according to AGM presentation.
http://admin.aminex-plc.com/uploadfiles/2023%20AGM%20Presentation%20130723.pdf
Http://admin.aminex-plc.com/uploadfiles/2023%20AGM%20Presentation%20130723.pdf
Anyone remember a certain poster bleating on about ENQ which was 33p and ramped by them all the way down to 14p and that the deal here will never be done?
Meanwhile back to the important stuff.... Deal closure and FID generates $6million to SCIR and it could well be in the coffers before year end based on the last RNS
Good luck to the actual holders ay Mrc?
Ruvuma Operations Update
Aminex PLC, the oil and gas exploration and production company focused on Tanzania, is pleased to announce that operations on the Ruvuma PSC have continued to progress under the direction of the operator, ARA Petroleum Tanzania Limited ("APT"):
· Following analysis of the results of the initial 3D seismic processing and interpretation, the JV partners have chosen a new optimal target location of the Chikumbi-1 well ("CH-1"). The Tanzanian authorities have given provisional approval of the new CH-1 well pad location and final written approval is expected imminently.
· The full processing of the 3D seismic data is now complete. Given the vast volume of data acquired, interpretation is now due to be completed in Q4 2023, which may result in a full revision of gas reserve and resource potential for the field.
· A well-workover of the Ntorya-1 well ("NT-1"), to enable rapid tie-in to the gas production facilities and bring the well into early production requires the use of a drilling rig and remains scheduled to run after the drilling of CH-1.
· The Gas Sales Agreement ("GSA") in respect of the Ntorya Gas Field has now been agreed among the JV partners and the Tanzania Petroleum Development Corporation ("TPDC"). Signing of the GSA will take place upon approval by the Attorney General's Office.
· The Field Development Plan ("FDP") for the development of the Ntorya Area has now been approved by all parties.
· The Development Licence for the Ntorya Area has been approved by all relevant Tanzanian authorities and has been submitted to the Cabinet of Ministers for final authorisation.
· The Tanzanian authorities have continued with the necessary workstreams to progress the construction of the export pipeline from Ntorya to the Madimba Gas Plant to accommodate gas, according to recent public reports, by December 2023.
· APT recently received the first shipment of long lead items, including tubulars, required for the spudding of the CH-1 well.
· The two-week well-testing programme on the Ntorya-2 well ("NT-2"), designed to provide additional information required for the design of in-field processing facilities, and originally scheduled for late March 2023, is now expected to run in the coming months.
As previously announced, the conclusion to the above workstreams decouples the spudding of CH-1 from first gas production and receipt of gas revenues. The re-defining and de-risking of the project materially advances first gas production, which is now expected at the end of 2023. A further announcement on drilling rig arrangements and timings will be made in due course.
Aminex, with a 25% non-operated interest, is carried throughout the ongoing work programme to a maximum gross capital expenditure of $140 million ($35 million net to Aminex). The carry is expected to see the Company through to the commencement of commercial gas production from the Ntorya gas-field at zero cost to the Company.
Charles Santos, Executive Chairman of Aminex commented:
"Ruvuma is an important project for Tanzania requiring a broad technical engagement and multiple negotiations. We are very pleased that the Tanzanian authorities continue to prioritize our project, including supporting the accelerated production of gas and the building of a pipeline. We are also pleased to report that APT is making great progress, including finalization of the GSA, FDP and the Development Licence, and the identification of a much-improved well location. We expect additional progress in the coming months on the well-testing of NT-2, the spudding of CH-1 and the workover of NT-1. We also look forward to the completion of the 3D seismic interpretation by the fourth quarter of 2023.
· Following analysis of the results of the initial 3D seismic processing and interpretation, the JV partners have chosen a new optimal target location of the Chikumbi-1 well ("CH-1"). The Tanzanian authorities have given provisional approval of the new CH-1 well pad location and final written approval is expected imminently.
· The full processing of the 3D seismic data is now complete. Given the vast volume of data acquired, interpretation is now due to be completed in Q4 2023, which may result in a full revision of gas reserve and resource potential for the field.
· A well-workover of the Ntorya-1 well ("NT-1"), to enable rapid tie-in to the gas production facilities and bring the well into early production requires the use of a drilling rig and remains scheduled to run after the drilling of CH-1.
· The Gas Sales Agreement ("GSA") in respect of the Ntorya Gas Field has now been agreed among the JV partners and the Tanzania Petroleum Development Corporation ("TPDC"). Signing of the GSA will take place upon approval by the Attorney General's Office.
· The Field Development Plan ("FDP") for the development of the Ntorya Area has now been approved by all parties.
· The Development Licence for the Ntorya Area has been approved by all relevant Tanzanian authorities and has been submitted to the Cabinet of Ministers for final authorisation.
· The Tanzanian authorities have continued with the necessary workstreams to progress the construction of the export pipeline from Ntorya to the Madimba Gas Plant to accommodate gas, according to recent public reports, by December 2023.
· APT recently received the first shipment of long lead items, including tubulars, required for the spudding of the CH-1 well.
· The two-week well-testing programme on the Ntorya-2 well ("NT-2"), designed to provide additional information required for the design of in-field processing facilities, and originally scheduled for late March 2023, is now expected to run in the coming months.
As previously announced, the conclusion to the above workstreams decouples the spudding of CH-1 from first gas production and receipt of gas revenues. The re-defining and de-risking of the project materially advances first gas production, which is now expected at the end of 2023. A further announcement on drilling rig arrangements and timings will be made in due course.
Aminex, with a 25% non-operated interest, is carried throughout the ongoing work programme to a maximum gross capital expenditure of $140 million ($35 million net to Aminex). The carry is expected to see the Company through to the commencement of commercial gas production from the Ntorya gas-field at zero cost to the Company.
You managed to mention the US$5.81 million in the bank for G&A well done
You still however are missing the $35 million Carry to production and the low cash burn rate figure.
Lets see if you can do better next week and get into the B's?