Aminex are looking very good. Todays news is further proof that the company have got all their pies in the right fingers. This mornings’ news on the signing of the development licence, although a formality that was always going to happen, now gives them the official rubber stamp.
“The Development Licence represents an area carved out of the Nyuni East Songo-Songo Production Sharing Agreement (‘Nyuni PSA’) which includes the mapped area of the Kiliwani North gas field. The Kiliwani North-1 well flowed gas at a rate of 40 million cubic feet per day (equivalent to 6,700 barrels of oil per day) under full production test conditions. Ndovu manages the Nyuni PSA and the Kiliwani North gas field as operating partner for a four-company consortium.”
The Kiliwan North1 has already been shown to produce at 40million cubic feet of gas per day that’s equivalent to 6700 barrels of oil per day! To which Aminex have a 65% share of the production. This well contains 7.5 million boe small beer you might think but you would be wrong. The field is less than 2 miles from production facilities and all of the gas will be sold on the Tanzanian market. Remember that this is the first well in a campaign that should be company making for Aminex in East Africa. Fanjove North another prospect in the same area has been estimated to contain 30 million boe.
Their Existing USA production base in Louisiana and Texas coupled with successful US exploration in 2010 is now providing revenues for the development drilling programme planned for 2011. Aminex have a debt-free balance sheet and are known to be chomping at the bit to progress the company this year 2011. The company are targeting, (an independent report assigned) 278 billion cubic feet gas in place to the Nyuni production sharing agreement in Tanzania. The more prospective resources – those that have been mapped from seismic but not yet drilled – amounted to 2.548 trillion cubic feet of gas from three separate prospect areas on the licence. And remember that Africa presents challenges to all oil explorers vis-a-vis equipment and logistics. That’s a very important point to consider. As Aminex run Amossco and are well versed in supply side logistical support. Aminex’s strengthened balance sheet will ensure that the Group can complete its planned high-impact exploration drilling projects and increase its production over the next twelve months. There’s going to be a lot going on here this year. So keep your eyes on. A 20p target is well within reach and is conservative on my part. Remember they are being written about as an investment for future growth and not a day-trade. Get researching them and please do post any comments in the forum provided.