Aminex Raises Funds for Tanzania

UK independent Aminex – which has produced gas from the Kiliwani North field in Tanzania since April – said this week that its Mtwara exploration licence much further south in the country has been formally extended for a year.

The company raised only about half its target funding for new drilling in the area; a month ago it had announced plans to raise up to £19.5mn ($26mn) by issuing new shares.

Aminex said August 1 that its open share issue was 49.7% subscribed. On August 2, its capital increase was approved by its extraordinary general meeting. The new shares – just over 983mn open rights shares (corresponding to the 49.7%) and almost 319mn ‘placing shares’ – are expected to be listed in Dublin and London, with trading to start early August 3.

The Mtwara Licence, which had been due to expire this December 2016, received formal ministerial approval and signature for an extension of one year until end-2017, said Aminex on August 1. This followed a preliminary approval given by the state oil company TPDC in June.

Mtwara is part of the Aminex-operated Ruvuma production sharing area (PSA) while Kiliwani North is part of the Nyuni PSA (Map credit: Aminex)

Mtwara includes the Ntorya appraisal area where Aminex has an existing discovery well, Ntorya-1, which tested at 20mn ft³/d with 139 bbls condensate. The company now says that civil work for the Ntorya-2 appraisal well has begun and the well-pad is expected to be completed within ten weeks.

Aminex has a 75% working interest and is the operator of the new well, located 1.5km southwest of the Ntorya-1 discovery well. UK-listed Solo Oil has the other 25% interest. The well will satisfy its appraisal drilling obligation after with both firms will apply for a 25-year development licence subject to its success. Solo said that Ntorya-1 is estimated to have the potential for over 1 trillion ft³ of gas in place.