Member Info for cperkin

No worries HY, I think WEN have got a good deal here, risk is shared till production revenues come in and the potential upside is significant with WEN shareholders getting by far the majority share and SCIR holders only getting back what the company already invested in the asset on full production and 50 BCF sold.

Good deal by the WEN board and could bring some much needed market interest imo.

GLA

HY, glad you are catching up, been invested here for some time actually and very pleased that WEN holders now have a near time drill (pending formalities) with a large potential upside.

GLA

C'est la vie Dan, shame shareholders here don't get to see any of the Ruvuma upside from here on in, happy with my AEX and WEN holding for Ruvuma asset upside at least.

GLA

Is that the market likes it.

Hilarious Crusty, maybe you should consider a new career in stand up ;0)

I should imagine there will be a few who follow the asset over to here and WEN

Good news for the remaining JV partners, onwards!

Morning steve, it is a risk sharing deal and about what to expect from the dire situation the company is/was in.

I think the total spend is in the region of £13 million, probably closer to $15 million when you consider the cost of all the placings over the year, so about at cost recovery I would guess.

That took a long time!

SCIRS 25%

https://www.lse.co.uk/rns/WEN/proposed-acquisition-sdabwthtun8py9j.html

The consideration is comprised of an initial cash payment of $3 million due upon Completion, with further deferred and contingent cash payments of up to $13 million dependent on certain development and production milestones.

injured, maybe a Freudian slip, but endured that should read!

I think the excitement is more about the fact the Government want to exploit their gas whilst they still can, unlike the previous regime and the years of delays injured by all.

Gas is on...

https://twitter.com/abdulsamadz/status/1535601057224597505

I would agree haggis, at least 5 years away it would seem and we are yet to see this HGA signed and agreed, I think they are now saying tomorrow.....again.

EU MEMBER STATES VISIT IN TANZANIA

https://twitter.com/atogsofficial/status/1535304867283091456

Hi, the complete work programme cost for SCIR for 2022 & 2023 is $6.25 million USD. We have no idea how much of this has been spent so far if any.

https://www.lse.co.uk/rns/SCIR/tanzania-operations-update-6luscntp5n1sdxh.html

Additionally it has been reported in the press that the total cost of the drill has been reduced significantly but there is no RNS to confirm this.

GL

3D
Spud
CH1 Drill results
GSA

All to come over the coming months and all fully funded, certainly anything under a penny is an absolute steal with bagging and multi bagging potential imo.

For the record Crusty is probably the one guy that has attended more AGM's than anyone I know.

If Chikumbi -1 shows up anything like the 20 million cubic feet a day demonstrated on Hall's first well, then rather than the estimated 1.87 trillion cubic feet of gas that RPS Energy previously estimated to be in the field, on foot of the first two wells, the total could be closer to six trillion cubic feet.
Significantly, oil prices are back up at more than $100 a barrel and gas prices have been pulled up as a direct result and are likely to stay high, given the increasing commitment of the US and EU to gradually reduce and eventually ban all use of Russian gas and oil, no matter what happens with the war in Ukraine.
Previously, the estabished gas in Tanzania was $3 per 1,000 cubic feet but the going rate today is more like $10. If the step-out well drill is successful and APT proves up anything like a six trillion cubic feet gas field, with a 50% recovery rate, this would make this field worth a gross of £30bn and Aminex's 50% $7.5bn
This gas field is right at the end of a 300-mile 36-inch gas pipeline that goes all the way up to the capital city of Darsses Salam and connects up to a big power plant there, passing through a big ceramics factory and a cement plant adjacent to the field. Therefore, development of the field will not have to wait for any new pipeline infrastructure, and gas will be able to flow immediatly.
Aminex shareholders have had a awful time. Hall did an impressive job developing gas field in Russia in the 1990's before eventually selling out under duress for $20m. More recently, the company discovered the small Kiliwani gas field, before the two big onshore gas wells were drilled
The share price hit 17p in the late 1990s and fell back to 10p in the early noughties, before briefly hitting another peak of 41p in 2006 on expectation of the drill offshore Tanzania.
After Hall's first success onshore Tanzanai in 2012, the shares recovered again, this time to 7p but have never regained this level and now trade at a little less than 1p, at which the company is capitalised at £32m
Assuming the onshore drill in November shows recoverable reserve of up to three trillion cubic feet of gas as forecast, then, Aminex's net share of revenue, before the government takes its taxes, of course, would be a gross £7.5b
Even if half of this is accounted for by production costs and royalties, this would make Aminex shares worth about £1 each, 100 time the price they are trading at currently. This looks like a very wide gap and could close very rapidly if the step-out well drill delivers on expectations.
If it doesn't, the existing discovery proven up by the two successful gas wells already drilled would equate to an equivalent gross value of the field of $2.5bn. Again, assuming 50% is spent on production costs and government levies, this would leave the shares worth 30p
The unfortunate Aminex shareholders will be keeping their figures crossed that they eventually get some real good news.

Recent financing activity has been hard to understand however. In his review in the 2020 annual report last year, executive chairman, Charles Santos, describing the APT deal, said: " This transaction should see the company entirely carried to material levels of production and revenue and without the need to return to shareholders for any additional funding for the development of the Ntoya location."
That deal left Aminex without any borrowings and net cast of $0,4m at year end, while the company had also committed to reducing overheads because it was no longer activity engaged in the big Ruvuma gas field project
Moreover, a long running dispute with that state's Tanzania Petroleum Development Corp over gas sold from the Songo Island offshore field ended with a 1.85m pay-out to Aminex (albeit well short of the $8m originally claimed)
Nevertheless, in January this year the company raised $4.4m in new equity by way of a placing. This is despite the fact that Santos, has been successful in reducing the less active Aminex's ongoing costs, slashing them from $6m to $1.5 pa - a 75% reduction.
Elsewhere, Aminex believes that there are further mineral reserves yet untapped in the Kiliwani gas field offshore. Tanzania and the area is now the beneficiary of a significant 13sq km new 3D seismic survey over this field, and an adjoining one, carried out by Pan African Energy Tanzania (PAET)
Aminex has no plans to go back in and redrill its prospects here, but, if this seismic survey shows up anything exciting, the company will negotiate a further farm-out deal with PAET to develop the Kiliwani gas field
Separately, onshore in the big Ruvuma gas field, Aminex's farmout partner, APT is now completing its own 3D seismic survey over the whole field and is committed to drilling and testing the four-mile step-out well. On foot of this survey, APT, will then format a field development programme for the Ntoya gas field

It is ten years since former Aminex boss Brian Hall originally hit part dirt in the Ruvuma licence in Tanzania, when he took on sole risk after Tullow Oil pulled out of a 50/50 deal on the licence, discovering a secondary target flowing gas at 20 million cubic feet a day. Hall followed this up five years later in 2017, when he drilled the second well, Ntorya- 2, that encountered a significant 51 metres of gas bearing sands, which in turn flowed at a rate of 17 million cubic feet a day, through a restrictive choke. Today, there has been little sign of real progress but a drill planned for November could change things very quickly.
Since then, there has been a lot of coming and going with JJ Bhaattacharjee, who came on board as CEO in 2014 to develop this gas field, jumping ship in May 2019. This was surprising, given that Hall had retired as chairman in August 2018
After the big discoveries, the plan was to drill a four-mile step-out well to prove up this estimated near two trillion cubic feet gas field. This crucial well is finally set for drilling in months.
- November 2022- and should prove up the full extent of this field. Significant reserves have already been identified on foot of this first two wells, but if the new source is a success, this could turn out to be a bigger field than anticipated.
It is difficult to know what has taken so long to move things along, with Hall having raised $25 million after the first successful well, and the sultanate of Oman put up $17 million through Zubair Corporation to land a 28% shareholding. This funding paid for the second well and was so successful that it should not have been difficult to raise funds to build the third well.
Just before Hall exited in August 2018, he secured the future of Aminex by farming out two-thirds of the company's 75% stake in the Ruvuma gas field, although this deal looked a bit too cosy, involving a farm-out with ARA Petroleum Tanzania (APT), a subsidiary of Zabair Corp which is, in turn, controlled by the Sultanate of Oman.
The deal, nevertheless, looks sound in that APT is committed to drill not only the third planned well, called Chakumbi -1, but to fully develop the field and commit to spending $140m and pay £5m to Aminex upfront.
This valued its carry for Aminexat £35m. Without having to pay a cent more, Aminex will benefit for a cost-free 25% interest in the development of this field
It was only in October 2020 that the farm-out deal with ARA was finally completed. It was not helpful that the president of Tanzania, John Magufuli, ran what was a semi-dictatorship. The Covid-denier eventually contracted the virus and died in March last year, resulting in his deputy, Samia Suluhashassain, taking over the hot seat.
She has claimed she will not as autocratic as her predecessor, and plans to open up Tanzania to foreign investment and develop international relationships. On the surface at least, this should only be good for Aminex