Aminex narrowed its losses in what is chairman hailed a “landmark” year for the firm.
The company recorded a loss of $2.53million for 2016- down from last year’s $3.78million.
Last year, the firm also managed to start production from its Kiliwani North-1 well into the new Tanzanian national pipeline system.
Chairman Brian Hall said: “2016 was a landmark year for your Company in Tanzania.
“In the early part of the year we started producing from the Kiliwani North-1 well into the new Tanzanian national pipeline system and production continues at approximately 16 MMcfd at the time of writing. Kiliwani North is Aminex’s first African production and is making a positive impact on the company’s finances.
“We have been working in Tanzania for a long time and have never lost our conviction that there is a major hydrocarbons play to be exploited. Earlier drilling successes at Kiliwani North and Ntorya were important milestones but our latest discovery at Ntorya-2 opens up a new era of development possibilities. We were also pleased to receive an extension to the Nyuni Area PSA in December 2016, which will enable us to accelerate activity on that licence. The company remains focused on projects that have the potential for early cash flow and with infrastructure available, the Ruvuma PSA provides us with a great opportunity for development.
“Aminex management and technical team has done a fine job in persevering with these projects through many difficulties, while all of us at the company appreciate the support of shareholders who have stayed with us through good times and bad, as we look forward to an exciting future.”
Chief executive Jay Bhattacherjee added: “Following the success of the Ntorya-2 well, the interpretation of results will be used to finalise the design for the Ntorya-3 well. Aminex is prioritising preparation of a development plan for Ntorya and will submit an application to the Tanzanian authorities for a 25-year development licence over the prospect with the intention of identifying and drilling development wells in the most cost effective manner. The Ccmpany proposes to monetise gas from Ruvuma as quickly as possible and will continue to work with TPDC on suitable early production systems, with the ultimate aim of supplying gas into the National Gas Gathering System. Production from Kiliwani North is being used to accelerate repayment of the company’s corporate debt facility in full ahead of the 31 January 2018 repayment date.
“The group’s ongoing overhead expenses are closely monitored although, as attention turns to development and production, the in-house technical team will be strengthened to meet expanding operations.
“I would like to thank our staff and all those that have been associated with the Company’s progress for their consistent hard work but most of all our shareholders for their continued support and trust.”
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