UPDATE: Aminex, Tullow and Solo Oil to drill further well in Tanzania
1:25 pm by
Andre Lamberti
The well is designated Ntorya-1 and will be drilled in the Ruvuma Basin Production Sharing Agreement area in Tanzania
UPDATE: Adds comments from broker Shore Capital
Aminex PLC (
http://www.proactiveinvestors.co.uk/companies/overview/8673/aminex-8673.htmlLON:AEX) said the partners in the Ruvuma Basin Production Sharing Agreement in Tanzania plan to drill a further well in the southern part of the PSA, targeting the same high quality lower
tertiary reservoir sands encountered in the Likonde-1 well.
The well is designated Ntorya-1 and will be drilled in the Mtwara Block. The partners are Tullow Oil (
http://www.proactiveinvestors.co.uk/companies/overview/4512/tullow-oil-4512.htmlLON:TLW), which is operator with a 50 percent interest in the well, Aminex with 37.5 percent and Solo Oil (
http://www.proactiveinvestors.co.uk/companies/overview/9059/solo-oil-9059.htmlLON:SOLO) with 12.5 percent.
The Tanzanian authorities have formally approved the drilling of Nyorya-1 and a rig has been secured. The spud date is likely to be September-October this year, Aminex said.
In 2010 the joint venture drilled the Likonde-1 well in the Lindi Block which forms the northern part of the Ruvuma PSA. Likonde-1 reached a total depth of 3,647 metres and intersected two sandstone intervals with a combined thickness of over 250 metres, containing evidence of residual oil and gas. Likonde-1 was terminated due to high gas influx.
Ntorya-1 well will be drilled about 14 kilometres to the south of Likonde-1, to a planned total depth of 2,020 metres. Seismic interpretation places the sands at Ntorya-1 structurally up-dip relative to Likonde-1.
Aminex estimates that the well has a probability of success for the discovery of hydrocarbons of approximately 20 percent, with a mean recoverable resource potential of 100 million barrels oil equivalent.
Aminex chairman Brian Hall said: "The Ruvuma basin is a significant frontier exploration area which has witnessed important discoveries offshore in the last two years, in neighbouring Mozambique and most recently with BG's discovery in a deep water licence directly adjoining the Ruvuma PSA.
"The Ruvuma PSA covers a large, mainly onshore area which has only been lightly explored to date and we welcome the approval of the Tanzanian authorities to the Ntorya-1 location which will enable an exciting drilling programme to continue."
In a note to clients, Shore Capital analyst Craig Howie looked ahead to Aminex' Tanzania drill programme, saying: "With a rig secured and spudding expected in September/October 2011, this well appears fully on track for drilling in line with the planned schedule.
"In the shorter term, we look forward to the imminent spudding of the Nyuni-2 exploration well in the Nyuni PSA, and anticipate a period of exciting drilling activity in coming months."
Meanwhile, Howie emphasised that he is also looking forward to the results of Solo's Ausable #5 well in Canada, which he expects later this month.