Research document on Aminex with some detailed information about the Tanzanian assets shared with KEY.
Tanzania
Nyuni PSA
Nyuni is an offshore licence covering shallow reefs and islands and is located around 200km from the largest city in Tanzania, Dar es Salaam. The acreage formed part of the acquisition of Tanzoil in 2002, and is now in its second extension period, which is due to expire in May 2011 with a two-well commitment. Aminex fulfilled its drilling obligations under the previous two licence periods with the drilling of three wells. The first well, Nyuni-1 (drilled in 2003/04), encountered oil and gas shows, but did not flow and was suspended for future re-entry, while the second well, Kiliwani-1 (drilled in late 2007), did not encounter any commercial hydrocarbons and was subsequently plugged and abandoned. A third well, Kiliwani North-1, was successfully drilled in 2008, locating a 60m gross gas column and testing at rates of 40mmcfd.
The KN-1 discovery on Nyuni is located 2.5km from the entry point and treatment plant for the Songo-Songo gas field, allowing for tie-ins to the existing gas treatment plant on the island and pipeline back to the mainland. However, commercialisation has been stalled as planning consent for the upgrade at the plant has been deadlocked. This has now been resolved, so engineering plans for final approval can be submitted by the pipeline and treatment plant operator, Songas. This upgrade will involve the addition of two new trains and compression at the plant, increasing throughput to 140mmcfd from current capacity of 105mmcfd to accommodate gas from KN-1. At the same time, Aminex has submitted its draft 25-year development licence application. First gas production is expected in late 2012 at rates of 20mmcfd.
Recent interpretation of reprocessed 2D seismic and well data from previously drilled wells has identified 233bcf of mean contingent resources in the untested gas-bearing Aptian-Albian sands found at Nyuni-1, and 2.5tcf of exploratory upside in four firm prospects with both Neocomian and Aptian-Albian targets.
Next drilling will be to target the exploration potential on the Nyuni prospect across two structures: Nyuni East and West. These will be drilled at the crest of two prominent closures identified on the island, in between which the first well Nyuni-1 was drilled. Aminex will commence drilling in 1Q11 at the East structure with the Nyuni-2 well. Any exploration successes will be tied back to the Songo-Songo gas plant, with the potential for a gas gathering hub in the region and, depending on the cumulative size of the discoveries, a floating LNG plant could be utilised.
West Songo-Songo
Along with operating partner Key Petroleum (50%), Aminex was awarded the West Songo-Songo PSA in July 2008. The acreage is located adjacent to Aminexs Nyuni PSA in the trend of the Rufiji Basin that includes the producing Songo-Songo gas field. There is existing seismic over the licence which will be reprocessed and interpreted ahead of any drilling decision. Due to its close proximity to Songo-Songo Island, the potential exists for any discoveries on the WSS licence to be tied back to the existing infrastructure.
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