nyuni #2, page-21

Some more snippets from Stockopedia, this time from marben100, who attended an information session held by Aminex in London:

There was some discussion about the prospects for commercialising Nyuni-2, if successful. Brian's view is that a larger, more material to Tanzania, discovery than KN-1 will encounter fewer bureaucratic delays than KN-1 has.

Commercialising Nyuni-2, however, will require substantial CAPEX - but Brian considers this "a high class problem", in the event of drilling success, and that finding partners or raising money at a significantly higher share price than at present is unlikely to be difficult under those circumstances. NB infrastructure costs make a discovery of less than 250bcf at Nyuni-2 uncommercial.

Fanjove, OTOH, a prospect that Aminex hope to drill at some point (maybe 2012?), could be commercialised much more easily by tying in to the hub that is to be established at KN-1.

I asked whether, in the event of success, one well will be enough to properly delineate the accumulation at Nyuni. It was stated that this is difficult to answer and will depend on the precise results of Nyuni-2. My impression was that more work was likely to be necessary in the event of success, probably including further seismic.

I also asked whether the Tanz govt had any reservations about permitting the export of gas from a sufficiently large discovery via LNG. Brian stated that this was a concern of BG before embarking on their recent successful offshore explo. programme. He was confident that in the event of a discovery in excess of Tanzania's domestic needs permission would be forthcoming.

A crucial meeting is being held this month with Songas, at which Aminex hopes to progress agreement for access to the Songo-Songo plant. From discussions after the presentation, I concluded that achievement of early 2012 production from KN-1 was dependent on the outcome of that meeting.

Brian indicated that the initial production rate from KN-1 was now expected to be 10mmscf/d (gross). This could be increased depending on the outcome of negotiations both for access at Songo- Songo and gas sales. Demand for the gas is healthy.