RE: Report on AGM25 Jul 2025 09:08
Morning all.
It was good to see the AGM very well attended, with the room almost full! It was also great to catch up with some familiar faces.
The BoD were generally very positive and optimistic about the next 12 months. It was a shame that Sultan Al Ghaithi was not there this year but ARA was represented by Robert Ambrose, who offered some considerable value with his contributions.
I do not intend covering anything that was included in the presentation but will add some comments and observations that came from the Q&A session and subsequent conversation.
Pipeline:
The pipeline is expected to complete in July 2026
NT2 gas will be tied in the following month and revenue received the month after that.
Asked about the timelines for Pipeline completion BoD stated that the complexity of the terrain and import of equipment was principle cause for extended timeline (previously anticipated as three months)
Initial phase (NT2,CH1 and NT1)
NT2 well test due to complete to coincide with pipeline completion, so not likely to start until Mid 2026
Well test is largely to confirm the levels of CO2 (previously 3%) in the Gas and is not expected or designed to increase production
CH1 and NT1 workover timing is totally contingent on selection, contract completion and availability of Rig
Robert Ambrose, in Q&A and in subsequent conversation confirmed that the "rig share" with M&P is still very much an option as, being in country is likely to be cheaper and M&P drill programme not likely to materially affect timelines. (M&P begin three well drill programme in Q4 this year)
Though all rig options remain open and the tender will ensure that M&P are "honest" and hold their feet to the fire when negotiating.
The three wells are planned to provide 60 mscf per day BUT CH1 (and subsequent First/Second phase drills) could produce 50 mscf per day and NT1 workover boost production there too.
However the TPDC is only contracted to take 60 mscf per day; all production above that would need to be sold to third parties (though TPDC may increase their consumption in future).
ARA and TPDC are currently in conversation / negotiation with potentail neww off takers and expect excess to find a home very easily.
The "indexation" of the gas price only starts to take effect upon production and not before
First Phase (NT3, NT4, NT5):
Likely to kick off in 2027 with first gas from 2028
Though all gas produced here will be sold to third parties
Likely need to build additional processing facilities at well head to facilitate third party off take options.
Second Phase:
Not much to say other than that, as ALL gas from this phase will have to be sold to Third Parties, timing of drill programme for this phase is likely to be contingent upon having Off-Take agreements in place.
Sign In
Follow the stocks
