Operational update for the Ruvuma PSA and the Kiliwani North Development Licence

The company has confirmed that an independent inspection of the Caroil 2 drilling rig has now been completed and the Ntorya-2 appraisal well is now expected to be spudded mid-December. The company has a 75% operated interest in the well and initial results are expected early next year. The well location is a 1500 m step-out from the company’s Ntorya-1 discovery which flow-tested gas at 20 million ft^3/d, with 139 bbls of associated condensate, from a 3.5 m sand interval. The Ntorya-2 well is expected to test the up-dip part of the same channel complex as the Ntorya-1 discovery well only in a thicker gross reservoir section.

Additionally, the company has now completed all necessary civil works for the subsequent Ntorya-3 wellsite. Ntorya-3, which will be located approximately 5 km from the Ntorya-1 discovery well, is expected to be drilled following Ntorya-2 but the programme may vary depending on the results at Ntorya-2. Ntorya-3 was identified based on 2D seismic acquired in 2014 and is further up-dip from Ntorya-1 and Ntorya-2. The well is expected to test the thickest part of the Cretaceous channel complex.

Revenues from Kiliwani North gas sales to the Tanzania Petroleum Development Corporation are now established. The gas is sold at US$3.00 per million btu at the outlet flange of the wellhead and the company does not incur any additional transmission costs. The agreed gas price is not linked to global commodity prices so is unaffected by changing market conditions. The company is paying down its corporate debt facility from the proceeds of sales receipts.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/05122016/operational-update-for-the-ruvuma-psa-and-the-kiliwani-north-development-licence/