Tai-3 well has successfully reached a TD of 1,448m measured depth ("MD") having encountered weathered crystalline Basement
· Elevated helium shows, up to six times above background, have been identified in the Lower Karoo Group and Basement targets
· Helium shows increased in frequency and quality with depth, as anticipated
· Whilst drilling into Basement, a fracture zone was encountered, which yielded elevated helium readings at the top of the Basement and led to partial losses of drilling mud
· Forward plan, following maintenance and safety checks, is to pull out of hole and rig up to run wireline for formation evaluation and downhole gas sampling
Well fair enough SVS However, Ruvuma is likely to provide many multiples of any revenue produced by the AD plant between now and end 2024, in fact it already has, hence why I think it should be of utmost importance to enable any developments here.
Good luck
I don't think my earlier expectation has changed, Development licence and GSA before year end ( I think the 3D results are also due then?) & then production could well be Q1-24 and drilling of the third well CH1 in Q2
Lets see what the operational update that is due confirms.
Https://twitter.com/EnergyVoiceNews/status/1719300679821390194
“ARA is now well positioned to take decisive steps towards developing the asset and ensuring that the natural gas produced from the Ntorya field is introduced to the market as quickly as possible."
Https://twitter.com/EnergyVoiceNews/status/1719300679821390194
Highlights
· Tai-3 well has successfully encountered helium shows whilst drilling in the Lake Bed Formation and the Karoo Group
· The Basement reservoir target has come in deep to prognosis and is yet to be reached; this has extended the drilling period
· Well depth is currently at 1,445m measured depth ("MD"), with well total depth ("TD") now expected to be at ~1,550m MD
· On Sunday 29th October, whilst drilling the final section, the rig encountered a mechanical and an electrical fault which resulted in a temporary rig shut down to allow for troubleshooting and repairs
· Once drilling recommences, the Basement target should be reached quickly and this will be followed by a comprehensive wireline programme to fully evaluate the helium shows encountered whilst drilling
Details
The Tai-3 well has encountered helium shows whilst drilling in the Lake Bed Formation and the Lower Karoo Group. These measurements were made on the Micro Gas Chromatograph whilst drilling and have also been calibrated with the portable mass spectrometer to confirm the presence of helium in the mud gas.
The Company has not yet reached the third reservoir target of Basement and were hoping to reach well TD yesterday. The Basement target is now over 400m deeper than prognosed, but cuttings have indicated the presence of weathered metamorphic material, indicating that the well is now very close to the target interval.
On Sunday 29th October, whilst running back in hole following a drill bit change, there was a seal failure on the iron rough neck which is used to make and break connections of drill pipe. The Company is confident that this part can be replaced in-country but will require a few days to source and repair.
Following the component failure in the rig carrier on 4th October and prior to yesterday, the Predator 220 drilling rig had continued to perform well.
Once drilling has recommenced and has reached TD in Basement, the Company will then rig up for wireline operations and commence logging in order to gain additional information on reservoir characteristics, as well as to identify and sample any gas-bearing intervals. The Company will make further announcements in due course.
Lorna Blaisse, Chief Executive Officer, commented:
"We are pleased with the current results of Tai-3 with encouraging helium shows encountered in the Lake Beds and the Karoo. These initial results still need further evaluation to determine the full extent of what we have at Tai and where there may be gas-bearing intervals.
Whilst it's frustrating to have suffered another small setback with the rig, we are confident we will resolve these issues quickly so we can get back to drilling and target the remaining reservoir in the Basement."
So what are peoples thoughts on these being delivered in the next few weeks? Both are huge game changers for the company and the doorway to production
My thoughts are if they are delivered then production could well be Q1-24 and drilling of the third well CH1 in Q2
Your expectations seem a little outdated RoJo
From the last RNS
"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."
This is actually what people are waiting on, also from the last RNS
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.
Anyone fancy a pork pie?
You mean this from the interim results where revenue increases but EBITDA is lower yet still positive.
Revenue for H1 2023 was £574k compared to £544k for the same period in 2022, an increase of 5.5% year on year.
• EBITDA for H1 2023 was £151k compared to £202k for the same period in 2022 reflecting lower average wholesale prices and operational interruptions and a general increase to the plant service and feedstock contracts.