Gas production to start in mid February 2016 at Kiliwani North, Tanzania

Aminex shareholders have been informed that the Tanzanian Petroleum Development Corporation has advised Kiliwani North-1 well could start production in mid-February 2016. The well is currently undergoing final well integrity testing prior to first production. The development comes after the Gas Sales Agreement (GSA) signing that happened in January, where the gas price was agreed at $3.00 per mmBTU, which approximates to $3.07 per mcf, for which the gas price is not linked to any commodity price and hence is not affected by the current commodity market. The payment will be made in USD for all produced gas including commissioning and testing gas.

Initial production rates are to be managed to allow for testing and commissioning of the recently completed Songo Songo gas processing plant and pipeline, while recording critical pressure (Pc) and flow rate measurements to determine the optimal flow rate ultimately maximising the life of the reservoir.

Senergy has been ascribed 28BCF contingent (2C) resources to Kiliwani North, which was contigent upon the completion of the Gas Sales Agreement. Aminex says it expects that the company will be able to book its first reserves for its Tanzanian assets later within the year.

Aminex CEO, Jay Bhattacherjee said that “We are pleased to maintain our working interest in the Kiliwani project post signing of the Gas Sales Agreement and are looking forward to becoming a Tanzania gas producer. In addition to first production it is our belief that the Kiliwani North Development Licence will also represent the first bookable reserves for the Company in Tanzania and we look forward to updating the market in due course,”


-Source: oil news kenya

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