Aminex PLC Successful Ntorya-2 Well Test (8008Y)
March 08 2017 - 02:00AM
UK Regulatory
TIDMAEX
RNS Number : 8008Y
Aminex PLC
08 March 2017
8 March 2017
Aminex plc
("Aminex" or "the Company")
Successful Ntorya-2 Well Test
Aminex is pleased to confirm that the Ntorya-2 appraisal well
has now been successfully tested and is being suspended for future
production. Ntorya-2 was drilled in the onshore Ruvuma Basin of
southern Tanzania, on the Mtwara Licence (Aminex 75%, operator)
which is governed by the Ruvuma Production Sharing Agreement.
Highlights:
-- 51 metres gross reservoir section associated with significant gas influx and pressure
-- Company was required to increase drilling mud weights in
order to maintain well control and operate within safety parameters
- higher mud weights resulted in reservoir invasion
-- Company limited test flow rates with a 40/64" choke and the
well flowed dry, high quality gas at average stable rate of 17
MMscfd (2,833 BOED)
-- No formation water was produced during the test, leading the
Company to conclude that the Ntorya-1 and Ntorya-2 area contains a
significant volume of gas in place
Jay Bhattacherjee, CEO of Aminex said:
"The overall results of Ntorya-2 have substantially exceeded
Aminex's expectations and now we have the potential for a
commercial development project in the Ruvuma Basin. Ntorya-2 is
currently being suspended for future production. Further analysis
of the well results is ongoing and we will keep shareholders
informed of progress.
Despite the measures we had to take to control the well during
drilling, due to a large gas influx in the reservoir section, the
Ntorya-2 test clearly supports our belief that there is a
considerable gas basin to be exploited in our Ruvuma onshore
acreage which we are looking forward to developing. This project
should ultimately be of immense benefit to the Tanzanian economy
and is an excellent result for our patient and supportive
shareholders and all other stakeholders."
Further to the Company's 6 February 2017 announcement, the well
was drilled to a final total vertical depth of 2,795 metres. At
2,593 metres drilling depth, the well encountered a gross
gas-bearing reservoir unit of approximately 51 metres. The
reservoir section was associated with significant gas influx and
pressure was much higher than expected.
The well was perforated over a gross interval of 34 metres. It
underwent a testing programme for a period of 160 hours and flowed
across a variety of choke sizes. In order to preserve reservoir
integrity and operate safely, the Company limited test flow rates
and the well flowed dry, high quality gas at average stable rate of
17 MMscfd (2,833 BOED) on a 40/64" choke. Strong pressure build-up
occurred in all instances during the well test.
Due to strong gas influxes encountered while drilling through
the reservoir section, and in order to preserve the safety of the
well operations, Aminex was required to increase drilling mud
weights in order to maintain well control and operate within safety
parameters. The higher than planned mud weights resulted in
reservoir invasion which tempered overall test performance.
According to wireline logs, Ntorya-2 encountered the equivalent
reservoir section at approximately 74 metres higher than in the
Ntorya-1 well. No formation water was produced during the test,
leading Aminex to conclude that the Ntorya-1 and Ntorya-2 area
contains a significant volume of gas in place. Ntorya-2 also
encountered traces of oil in the gross reservoir interval and the
Company is updating its basin model to determine the optimal
drilling depths for Ntorya-3 and for future development wells. Post
analysis, Aminex will be able to revise its interpretation of
in-place volumes.
Aminex will now complete a full analysis of all technical data
prior to applying for a 25-year development licence over the Ntorya
appraisal area.
Further details of the Ntorya-2 appraisal well can be found on
the Aminex website (www.aminex-plc.com) in the Ntorya-2 Appraisal
presentation which is being released concurrently with this
announcement.
Ends
For further information, please contact:
Aminex PLC
Jay Bhattacherjee, Chief Executive Officer +44 (0) 20 3198
8415
Max Williams, Chief Financial Officer
Investec Bank plc
Chris Sim +44 (0) 207 597 4000
Shore Capital
Jerry Keen
+44 (0) 20 7408 4090
Davy
Brian Garrahy
+353 (0) 1 679 6363
Camarco
Billy Clegg / Gordon Poole / Tom Huddart +44 (0) 20 3757
4980
Notes to editors
Aminex PLC is a producing company which is premium listed on the
London Stock Exchange and primary-listed on the Irish Stock
Exchange. The Company's focus is its three licences in Tanzania,
where it was one of the first independent oil companies to enter
the country in 2002:
Kiliwani North Development Licence (54.575%) Operator
The Kiliwani North Field has been independently ascribed with 28
BCF gross contingent (2C) resource and is currently in production
at 15 mmcfd. Gas is sold at the well head in $US at a fixed price
and fed directly into the Tanzania's pipeline infrastructure to Dar
es Salaam.
Ruvuma Production Sharing Agreement (75%) Operator
The Ruvuma acreage includes Aminex's Ntorya-1 onshore Cretaceous
gas discovery which has been independently ascribed 70 BCF gross
contingent (2C) resource in the Ruvuma Basin. The well tested at 20
mmcfd with 139 bbls of associated condensate.
Nyuni Area Production Sharing Agreement (90%) Operator
The Nyuni Area acreage offers high impact exploration and has
been ascribed 4.2 TCF prospective resource. Drilling success in the
region based on 3D seismic has been over 90%.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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