REG - Aminex PLC - Ntorya Development Licence handover ceremony

AminexAnnouncement

11/09/2024 14:30

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RNS Number : 8200D  Aminex PLC  11 September 2024

11 September 2024

 

Aminex plc

 ("Aminex" or "the Company")

 

Ntorya Development Licence received at handover ceremony

 

Aminex, the oil and gas exploration and development company focused on
Tanzania, is pleased to announce that following the grant of the Development
Licence over the Ntorya gas discovery area by the Ministry of Energy in
Tanzania in May 2024, the Company and the operator of the development, ARA
Petroleum Tanzania Limited (APT), were presented with the Development Licence
at a formal handover ceremony in Mtwara yesterday.

The Licence is for a period of 25 years and was presented to the joint venture
by the Deputy Prime Minister and Minister for Energy of Tanzania Dr. Doto
Mashaka Biteko. Along with representatives of the Company and the operator,
Lindi Regional Commissioner Ms. Zainab Rajabu Taleck and District Commissioner
Mr. Abdallah Mwaipaya were also in attendance at the ceremony, as well as the
Permanent Secretary of the Ministry for Energy, Mr. Felchemsi Mramba, Member
of the Board and Managing Director of the Tanzania Petroleum Development
Corporation, Mr. Dismas Fuko and Mr. Mussa Makame, and the Managing Director
of the Petroleum Upstream Regulatory Authority, Mr. Charles Sangweni.

The ceremony was attended by over 1,000 people, including local and regional
dignitaries, Members of Parliament as well as members of the public. The
Deputy Prime Minister outlined the government's vision for the future. Aminex
was encouraged to hear that the Deputy Prime Minister anticipates the
completion of the pipeline from Ntorya to Madimba within the next six months,
enabling the delivery of gas for the production of electricity. The Deputy
Prime Minister noted that:

·    President Dr. Samia Suluhu Hassan has been a driving force behind
this gas exploitation initiative.

·    For the first time under the current government, substantial
quantities of gas will be extracted as a consequence of this project.

·    The licence handover represents the government's dedication to
ensuring that the country's resources including natural gas, benefits its
citizens.

·    The licence marks the beginning of gas exploitation to further
strengthen electricity availability in the Mtwara region.

As well as endorsing the efforts of the joint venture to date, the ceremony
marked a milestone in the government's commitment to bring energy and economic
benefit to the region and the country.

Work on the Ntorya site has been progressing over the last few months, with
APT acquiring land for the upstream processing facilities and the Chikumbi-1
appraisal well location, while expanding another nearby site to accommodate
the construction of a camp and storage yard. APT is also putting into place
the logistics necessary to conduct the subsurface work that will lead to first
gas production.

This includes conducting a well-test on Ntorya-2 and converting it to a
producing well, drilling the Chikumbi-1 appraisal well with a view to
converting it to a producing well and carrying out a well workover at
Ntorya-1, before turning it into a producing well. First gas is anticipated as
soon as the pipeline carrying the gas away from the field is completed, which
is expected next year.

According to a Gas Sales Agreement signed with the Tanzania Petroleum
Development Corporation in January 2024, APT expects to produce 40 to 60
million standard cubic feet a day (mmscf/d) in the first year of production,
with an increase to 140 mmscf/d within a few years. Such volumes will increase
Tanzanian gas production by between 20-80 percent.

As a founding partner of the Ntorya gas discovery, with over 20 years'
presence in Tanzania, Aminex looks forward to realising the enormous potential
of the discovery beyond initial production as APT's joint venture partner, and
help it boost Tanzanian, and in particular, the Mtwara region's industrial
development and prosperity.

The joint venture partners believe there is potential to produce far greater
volumes of gas from Ntorya, having conducted an extensive 3D seismic survey
over the wider licence area. This potential will require investment in a
phased development of the Ntorya gas field and the maturing of domestic
industries as gas offtakers, such as fertiliser, cement and plastics
production plants, vehicle CNG stations, domestic LPG suppliers and additional
gas-fired power stations for industrial and residential use.

Aminex, with a 25% non-operated interest, is carried throughout the ongoing
work programme to a maximum gross capital expenditure of $140 million ($35
million net to Aminex). The carry is expected to see the Company through to
the commencement of commercial gas production from the Ntorya field at zero
cost to the Company.

Charles Santos, Executive Chairman of Aminex commented:

"We were honoured to be invited to this ceremony celebrating the handover of
the Ntorya Development Licence from the Ministry of Energy. This ceremony
demonstrates the firm commitment of the Government of Tanzania to utilise
Ntorya's resources to help eliminate energy poverty, spur growth and improve
living standards in the country. We are proud as a founding partner in Ntorya
to support ARA Petroleum and the Tanzanian authorities in this crucial effort.
Although this development licence is the beginning of our efforts, we are very
excited about the further potential of Ntorya to bring significant economic
benefits to Tanzania and the region."

 For further information:

 Aminex PLC                            +44 203 355 9909
 Charles Santos, Executive Chairman

 Knights Media & Public Relations      +44 203 653 0200
 Jason Knights, Sabina Zawadzki

 Davy                                  +353 1 679 6363
 Brian Garrahy

 Shard Capital                         +44 20 7186 9952
 Damon Heath

 

 

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