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Thursday, April 7, 2016
Aminex saw first gas production from the Kiliwani North gas field in Tanzania. Initial production commenced from the Kiliwani North-1 well (KN-1) on April 4. KN-1 is tied into the regional pipeline infrastructure and will deliver gas to the new adjacent Songo Songo processing plant, ultimately serving the local power market.
According to the company, production is expected to build up to an anticipated production rate of 25-30 Mmcf/d over the next 90-100 days.
All gas produced during the build-up to full production rates will be paid for under the terms of a recently signed GSA signed with TPDC. Aminex will receive $3.00 per mmbtu with expected net cash revenues of $10-15 million per annum.
Initial production rates will be carefully managed to allow for testing and commissioning of the gas processing plant and pipeline, while recording critical pressure and flow rate measurements to determine the optimal flow rate to maximize the life of the reservoir. Together with TPDC the company plans to conduct a well test during the production build up to determine the optimal flow rate. It is this optimal flow rate that will become the commercial production rate and Aminex intends to flow gas at this rate for as long as possible prior to a natural decline in production.
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