TIDMAEX
RNS Number : 8904D
Aminex PLC
05 February 2018
5(th) February 2018
Aminex plc
("Aminex" or "the Company")
Independent Report shows Significant Resource Upgrade
Aminex advises that RPS Energy Consultants Limited ("RPS") has
now completed a Competent Person's Report ("CPR") over the
Company's entire Tanzania asset base and that their findings have
established a significant resource upgrade. This result, taken
together with the results of the Ntorya Gas Commercialisation Study
prepared by io oil & gas consulting last year, confirms the
feasibility of developing the Ntorya gas field for commercial
production. RPS, a subsidiary of RPS Group, is an
internationally-reputed reporting firm and io oil & gas
consulting ("io") is a joint venture between Baker Hughes, a GE
company, and McDermott.
Principal Results
-- Ntorya Pmean GIIP: increased to 1.87 TCF, 44% over previously
reported management estimates of 1.3 TCF and a 12-fold increase
over the 2015 CPR
-- Ntorya 2C gross Contingent Resources: increased to 762.8 BCF
after the results of the Ntorya-2 well (approximately 11 times
increase from 2015 CPR). This comprises 80.6 BCF of Contingent
Resources "Development Pending" from a three well development and
682.2 BCF of Contingent Resources "Development Unclarified" (see
Appendix for full range of Contingent Resources)
-- Ntorya Development: io's report indicates, based on
reasonable assumptions, that a gas development project at Ntorya
could be viable with three wells, two of which have already been
drilled and a third (Ntorya-3) is scheduled for drilling this year,
producing into a raw-gas pipeline to the Madimba gas plant,
approximately 33 km away
-- Kiliwani North-1: The Kiliwani North structure has Pmean GIIP
of 30.8 BCF according to RPS. Approximately 6.4 BCF has been
produced from the Kiliwani North-1 well. RPS estimates 2P Reserves
ascribed to the well, after compression is installed, to be 1.94
BCF (see Appendix for full range of Reserves)
-- Kiliwani South: new lead identified, ascribed 57 BCF Pmean GIIP (management estimate)
The Ntorya gas project is a component of the Ruvuma PSA in the
extreme south-east of Tanzania where the Company has already
successfully drilled Ntorya-1 and Ntorya-2. The RPS CPR
significantly exceeds management estimates published following
Ntorya-2 drilling and testing and also exceeds the Company's
subsequent upgrade which was reported to shareholders following
in-house technical work.
In addition, the Company is very encouraged by io's study, which
indicates, based on reasonable assumptions, that Ntorya could be
developed with three wells, two of which have already been drilled
and tested. The io study indicates that an early production system,
which will limit upfront capital expenditure and enable cash-flow
funded further development, is a realistic and achievable
proposition. Further detail of the development plan will be made
available in due course.
On the Kiliwani North Development Licence ("KNDL"), where
approximately 6.4 BCF has been produced to date, a new prospect has
been identified and defined as Kiliwani South, with 57 BCF Pmean
GIIP. As the KNDL does not expire until 2036, the Company is
conducting technical work to assess the feasibility of further
drilling in this area. Successful wells could be brought onstream
into the Songo Songo gas plant, providing enhanced revenues for the
Company and its partners.
Finally, at the Company's Nyuni Area licence, the Pmean GIIP of
4.8 TCF (management estimate) remains as previously reported in the
2012 CPR and 2015 CPR (taking account of relinquishments since
2015), pending the acquisition of further data over the area.
An updated company presentation will be added to the website
shortly at www.aminex-plc.com. Aminex is hosting a presentation to
a group of sell-side analysts later today. Apart from what has been
disclosed above, no new material information will be disclosed at
this presentation.
Appendix
Gas Contingent Resources (Bscf)
-------------- ----------------------------------------------------------------------
Gross (100%) Ndovu's Net Ndovu's Net
License Basis (1) Working Entitlement
Interest Basis Basis
-------------- ---------------------- ---------------------- ----------------------
1C 2C 3C 1C 2C 3C 1C 2C 3C
-------------- ------ ------ ------ ------ ------ ------ ------ ------ ------
Development
Pending 25.5 80.6 212.9 19.1 60.4 159.7 16.3 51.6 123.3
-------------- ------ ------ ------ ------ ------ ------ ------ ------ ------
Development
Unclarified 342.3 682.2 949.5 256.7 511.6 712.1 194.9 353.6 465.5
-------------- ------ ------ ------ ------ ------ ------ ------ ------ ------
1 Company Working Interest is 75%
--------------------------------------------------------------------------------------
RPS Estimates of Contingent Resources in Ntorya
Gas Reserves (Bscf)
----------- ---------------------------------------------------------------
Gross(1) (100%) Ndovu's Net Ndovu's Net
License Basis (2) Working Entitlement
Interest Basis Basis
----------- -------------------- -------------------- -------------------
1P 2P 3P 1P 2P 3P 1P 2P 3P
----------- ------ ----- ----- ------ ----- ----- ----- ----- -----
Kiliwani
North(3) 1.06 1.94 3.75 0.58 1.06 2.05 0.52 0.95 1.83
----------- ------ ----- ----- ------ ----- ----- ----- ----- -----
1 Gross Field Reserves after economic limit test
(ELT)
2 Company Working Interest is 57.4474%
3 Reserves were estimated and reported on 15(th)
December 2017 and have not been updated to reflect
minor production achieved in the remainder of
2017
----------------------------------------------------------------------------
RPS Estimates of Reserves for Kiliwani North Development as at
31st December 2017
Glossary
2012 CPR The competent person's report prepared by RISC
Consultants in June 2012
2015 CPR The competent person's report prepared by LR Senergy in
May 2015
Contingent Resources Those quantities of petroleum estimated, as
of a given date, to be potentially recoverable from known
accumulations by application of development projects but which are
not currently considered to be commercially recoverable due to one
or more contingencies. Contingent Resources are a class of
discovered recoverable resources. 1C, 2C and 3C are confidence
levels equivalent to the P90, P50 and P10 confidence,
respectively
Reserves Those quantities of petroleum anticipated to be
commercially recoverable by
application of development projects to known accumulations from
a given date forward under defined conditions. Reserves must
further satisfy four criteria: They must be discovered,
recoverable, commercial, and remaining (as of a given date) based
on the development project(s) applied. 1P, 2P and 3P are confidence
levels equivalent to the P90, P50 and P10 confidence,
respectively
BCF or Bscf Billions of standard cubic feet of natural gas
GIIP Gas initially in place
km Kilometres
Ndovu Ndovu Resources Limited, a wholly owned subsidiary of
Aminex
Pmean The probability of encountering the mean volume
TCF Trillions of cubic feet of natural gas
This announcement contains inside information.
Ends
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 / James Crothers +44 (0) 20 3757
4980
About RPS Group
http://www.rpsgroup.com/Energy.aspx
About io oil & gas consulting
http://iooilandgas.com/about-io/
This information is provided by RNS
The company news service from the London Stock Exchange
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