Africa-focused oil and gas production and development company, Aminex plc, announced Wednesday that first gas production has been achieved from the Kiliwani North gas field in Tanzania.
Initial production commenced from the Kiliwani North-1 well April 4 and output is expected to build up to an anticipated rate of between 25-30 million cubic feet per day - approximately 4,000 or 5,000 barrels of oil equivalent per day gross - over the next 90 to 100 days.
All gas produced during the build-up to full production rates will be paid for under the terms of a recently signed gas sales agreement signed with Tanzania Petroleum Development Corporation. Aminex will receive approximately $3.07 per million cubic feet of gas, with expected net cash revenues of $10-15 million per annum. KN-1 represents gross contingent 2C resources of 28 billion cubic feet.
Aminex CEO, Jay Bhattacherjee, commented in a company statement:
“This is a significant moment for Aminex, its shareholders and Tanzania, and is the culmination of a tremendous amount of hard work by all involved. First gas at Kiliwani North marks the transition of the company from developer to producer in Africa and sets us on the path for growth as we begin to generate cash. The company looks forward to its exciting appraisal and development program in the Ruvuma Basin which will potentially add further revenues in due course.”
The Kiliwani North Development License is operated by a wholly-owned subsidiary of the company with a 55.575 percent working interest, which is expected to reduce to 51.75 percent as a result of a partial disposal announced April 4.
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