Pt2
The successful conclusion to the above workstreams is expected to have the following impact on the Project:
The decoupling of the spudding of CH-1 from first gas production and receipt of gas revenues. APT continues discussions with rig contractors and is confident of rig availability. We will provide a further announcement on drilling rig arrangements in due course.
Accelerated production from Ntorya, strongly supported by the Tanzanian authorities, and which has now been brought forward twice from the original schedule.
The FDP and resulting Development License will be granted up to 18 months ahead of the original schedule with significant gas revenues to Aminex arising from production through NT-1, NT-2 and CH-1, once drilled and completed.
The full 3D seismic results will be available by mid-year and will permit a full revision of gas reserve and resource potential for the field.
Aminex, with a 25% non-operated interest, is carried throughout the ongoing work program 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 Aminex.
Charles Santos, Executive Chairman of Aminex commented: “Today’s update demonstrates APT’s capacity, not only to run multiple critical negotiations and a significantly broader technical engagement but also its high level of confidence in the Project, fully supported by the Tanzanian authorities. Accelerated gas production, now targeted for October 2023, shifts the narrative of Ruvuma; it further de-risks the Project from a dependence on the spudding and outcome of CH-1 to a more anchored and broader development effort as we move toward early gas production.
“Such de-risking continues to honor the upside potential that will come from the drilling of CH-1, the 3D seismic interpretation and the full development of the field. As mentioned in our previous announcement, these developments are potential game-changers for all stakeholders in the Ruvuma development. Moreover, locking in the development license and halving the timeline for gas production and cash flow to the Company more than offsets the delay in spudding the CH-1 well. We thank APT and the Tanzanian authorities for their significant efforts in bringing the Project to fruition and look forward to providing a more detailed update to the market on completion of the current workstreams.”
A two-week well-testing program on the Ntorya-2 well (NT-2) has been designed and scheduled for late March 2023, utilizing a mobile testing unit, to provide additional information required for the design of in-field processing facilities and the export pipeline; in particular, an accurate measurement of the gas composition.
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 will run after the drilling of CH-1, which we expect later this year.
Advanced negotiations regarding a Gas Sales Agreement (GSA) in respect of the Ntorya Gas Field are ongoing with the Tanzania Petroleum Development Corporation (TPDC). It is expected that the GSA will be agreed and finalized shortly.
Tanzanian Authorities have actively engaged in substantial discussions with potential contractors for an export pipeline from Ntorya to the Madimba Gas Plant to accommodate gas by October 2023.
APT has held significant discussions with potential contractors for the construction of field processing/gathering facilities.
A near final Field Development Plan (FDP) has been submitted and is now with TPDC for final comments, which, upon approval, will lead to the issuance of a Development License for the Ntorya Area.
A request for a further extension of the Ruvuma license has been submitted, which is expected to be granted soon.
Thanks GL
https://www.petroleumafrica.com/chikumbi-1-spud-delayed-in-tanzania-ntorya-production-timeline-accelerated/
And Aimster, what happens to the remainder of the $35 million carry unspent?
Oh yes I remember
In the event that the minimum production target of 40 MMcf/d is achieved prior to Aminex's 25% interest having been carried for the full $35 million, APT will assign one quarter of its share of profit gas to pay the unspent Carry amount until the full $35 million is realised by Aminex
Seismic due Mid March.
2 week testing of NT2 late March.
NT1workover & and CH1 drill later this year.
GSA close to completion.
Pipeline ready October 23 for first gas production.
FDP submitted (Development licence)
Licence extension submitted
https://www.londonstockexchange.com/news-article/AEX/strategy-company-ops-update/15858276?
"Today's update demonstrates APT's capacity, not only to run multiple critical negotiations and a significantly broader technical engagement but also its high level of confidence in the Project, fully supported by the Tanzanian authorities. Accelerated gas production, now targeted for October 2023, shifts the narrative of Ruvuma; it further de-risks the Project from a dependence on the spudding and outcome of CH-1 to a more anchored and broader development effort as we move toward early gas production. Such de-risking continues to honour the upside potential that will come from the drilling of CH-1, the 3D seismic interpretation and the full development of the field. As mentioned in our previous announcement, these developments are potential game-changers for all stakeholders in the Ruvuma development. Moreover, locking in the development licence and halving the timeline for gas production and cash flow to the Company more than offsets the delay in spudding the CH-1 well. We thank APT and the Tanzanian authorities for their significant efforts in bringing the Project to fruition and look forward to providing a more detailed update to the market on completion of the current workstreams.
That is certainly the way of the small cap market Crusty. The response, If successful may well hinge on the plan to drill the next 5 or 6 wells, will we see the rig retained and some back to back this time, no I mean real back to back ;)
Q3 is broadly in line with what I was expecting and probably what most of the market was expecting. Fast money will run elsewhere providing opportunities for those not in a rush. It's broadly always the same on AIM stocks.
Bring on a rig announcement Q2 (meanwhile back to restful sleep)
MM's played a blinder this morning
You may be right then ice, I am not familiar with the daily fluctuations like you, in fact I was surprised by the amount of institutional investment for a share with such a tiny mcap.
Institutions? hardly likely with these tiny volumes & trades.
Nice find Whirlaw, seems you forced their hand :)
They have just completed a 5 day field visit for the EACOP pipeline, construction of facilities appears to be underway.
https://twitter.com/PAU_Uganda/status/1621434757342019585
"Minister of Energy, Hon. January Makamba said Tanzania has kept the door open to energy sector investments due to the high demand for energy in the country."
https://twitter.com/Nishati2017/status/1621083846044450819