Aminex to Withdraw from Tanzania PSA

- Aminex to Withdraw from Tanzania PSA

Tuesday, September 13, 2011
Aminex plc

Aminex and Key Petroleum Ltd. ('Key') currently participate 50-50 in the West Songo-Songo Production Sharing Agreement ('PSA') in Tanzania, with Key as the operating partner. Progress has been slow to date and the work program is behind schedule, creating uncertainty about the future of the PSA. As a consequence, Aminex has agreed with Key that it will withdraw from the PSA, transferring its 50% interest to Key which will then hold 100%. In exchange, Key will relinquish its 5% interest in the new 'Nyuni Area PSA' in favor of Aminex. The West Songo-Songo transfer is being submitted to the Tanzanian authorities for formal approval but the practical aspects of the transfer will be implemented immediately.

The 'Nyuni Area PSA' will replace the existing 'Nyuni-East Songo-Songo PSA', operated by Aminex's wholly-owned subsidiary, Ndovu Resources Ltd., which is now time-expired and where work obligations have been fulfilled, with two gas discoveries recorded. The new Nyuni Area PSA has already been initialed by both Aminex and the Tanzanian authorities, as previously announced, and will be formally executed by the Minister of Energy and Minerals at an appropriate time. The Nyuni Area PSA will be materially larger than the earlier one and will comprise 4 additional blocks directly to the north, as well as the area covered by the existing Nyuni-East Songo-Songo PSA. Key will retain a 5% working interest in the Kiliwani North gas development license, which was carved out from the Nyuni PSA earlier this year. Interest holdings will now be as follows:

• Nyuni Area PSA (1,690 km², including 338km² making up the 4 additional blocks)
  • Ndovu Resources (Aminex) 70%
  • RAK Gas 25%
  • Bounty Oil 5%
• Kiliwani North Development License (85 km²)
  • Ndovu Resources (Aminex) 65%
  • RAK Gas 25%
  • Bounty Oil 5%
  • Key Petroleum 5%

Aminex considers that the new acreage included in the Nyuni Area PSA will provide greater scope for establishing a new play fairway on the continental shelf which could share similarities to some of the recent deep water drilling successes.

Aminex Chairman Brian Hall commented, "Although West Songo-Songo is potentially promising acreage, we believe that our strategy of increasing our interest and acreage in the Nyuni PSA area together with our recently announced increase in our percentage interest in the Ruvuma Basin will be more effective and valuable than our existing portfolio mix."

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Solo Oil Ups Stake in Tanzania Ruvuma Basin

- Solo Oil Ups Stake in Tanzania Ruvuma Basin

Thursday, September 08, 2011
Solo Oil plc

Solo Oil announced an update on its plans for the drilling of an exploration well, Ntorya-1, in the Mtwara Block of the Ruvuma Basin PSA in Tanzania with its partners Tullow Oil and Aminex.

Further to the announcement on June 7, 2011, plans for the Ntorya-1 well have now been finalized with the all major services tendered and the Caroil-6 rig mobilization agreed to follow the current Aminex well Nyuni-2. The well will most likely be spudded in early November and is programmed to take 25 days to drill to a planned TD of 2026 meters.

Solo also announce that it has increased its stake in the Ruvuma Basin PSA from 12.5% to 18.75% in an agreement with Tullow in which Solo will assume the future obligations on the additional interest. Both Solo and Aminex have acquired additional interests in the PSA and Aminex will take over as operator from Tullow with immediate effect. Tullow will retain a 25% interest and will continue to support the joint venture with regional expertise and logistics.

The assignment is subject to final Tanzanian Government approval, which is expected to be granted shortly.

Solo Executive Director Neil Ritson commented, "The Ntorya-1 well, which is a follow up to the Likonde-1 well drilled in 2010, is an important further test of the largely unexplored onshore Ruvuma Basin. Both Solo and Aminex have a strong focus on Tanzania and by gaining a greater participation in the PSA will jointly be able to advance the work program more quickly. The long term potential is significant and we are very keen to continue the work started at Likonde as soon as possible."

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Aminex Drills Ahead Offshore Tanzania

- Aminex Drills Ahead Offshore Tanzania

Friday, August 26, 2011
Aminex plc

Aminex reported progress on the Nyuni-2 exploration well, currently being drilled from Nyuni Island off the coast of Tanzania in the Indian Ocean.

Nyuni-2 was spudded on June 17 using the Caroil Rig-6, to target Lower Cretaceous age Neocomian sandstones, similar to those found in Aminex's nearby Kiliwani North gas field and in the producing Songo-Songo gas field. The well is being drilled from a pad on Nyuni Island at an angle of 30 degrees from vertical, to target a bottom hole location approximately 1,200 meters SE of the surface location. Planned measured total depth is 3,325 meters from the rotary table on the rig.

With the exception of an 8 day period when the rig was shut down due to a requirement to replace damaged equipment, drilling operations have made satisfactory progress to date and 9 ?" casing is now being run to the current total measured depth of 2,945 meters. Once the well has been safely cased to this point, drilling will resume towards its target. The result of the well will be announced at the earliest opportunity.

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Total Awarded Tanzania Tanganyika O&G Rights -TPDC

- Total Awarded Tanzania Tanganyika O&G Rights -TPDC

Tuesday, August 16, 2011
Dow Jones Newswires
by Nicholas Bariyo

Tanzania's state oil company, Tanzania Petroleum Development Corp., has awarded rights to explore for oil and gas in its Lake Tanganyika Rift Basin to France's Total E&P Activities Petrolieres, with further negotiations and details on a production sharing agreement to follow, TPDC announced Tuesday.

"Total has shown itself to be able to comply with the minimum work commitment and has superior technical as well as financial capability over the other bidders to undertake exploration in the Lake Tanganyika North area," TPDC said. Total beat at least four other companies.

The Lake Tanganyika Rift Basin is part of the western arm of the East African rift valley, where at least a billion barrels of oil have been discovered in neighboring Uganda.

The Lake Tanganyika rift basin is divided into two blocks. Total will operate the northern block. The Southern block was awarded to Australia's Beach Energy in 2008.

Next year, Tanzania will open another bidding round for at least 13 blocks sitting between 1,200 meters and 3,500 meters of water depth off its coast in the Indian Ocean.

However, in recent months, licensing and exploration activities off the Tanzanian coast have been overshadowed by disputes between mainland Tanzania and the semi-autonomous archipelago of Zanzibar over the control of oil and gas in around five blocks near the isles.

Currently, Tanzania has licensed 12 deepwater blocks and recent exploration works have encountered at least 7.5 trillion cubic feet of natural gas. The country is yet to discover commercial oil reserves.

At the moment, there are no production projections Tanganyika project since no discoveries have been made, and formal exploration has yet to commence.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Orca to Boost Gas Production in Tanzania

- Orca to Boost Gas Production in Tanzania

Monday, July 11, 2011
Orca Exploration Group Inc.

Orca has signed an agreement with Songas Limited to increase the capacity of the Songo Songo gas field processing plant from 90 MMcfd to a potential of 110 MMcfd. This will increase the overall infrastructure capacity that processes and transports the gas to Dar es Salaam to 105 MMcfd.

With this higher system capacity the Company expects that Orca's Additional Gas sales will increase to an average of approximately 45 – 50 MMcfd from July 1, 2011 (compared with an average of 37 MMcfd in 2010) with a beneficial impact on cash flow.

This increase in Additional Gas production capacity is available for urgently needed power generation in Tanzania. The April and May long rains failed to replenish the reservoirs that the country depends on to generate up to 550 MWs of hydro power. As a consequence Tanzania's installed hydro power capacity is now dramatically reduced and an increase in reservoir levels is not expected until the advent of the short rains near the end of the year.

To address this shortfall, TANESCO recently re-commissioned a 112 MW gas fired power plant in Dar es Salaam (owned and operated by Symbion Power LLC). This will increase the total generation potentially consuming Additional Gas to 301 MWs (or approximately 66 MMcfd at peak load). Further additions to Tanzania's generating capacity are scheduled for next year. TANESCO has contracted Jacobsen Elektro to install a new 105 MW plant (maximum demand of 22 MMCfd) in Dar es Salaam and this is forecast to be operational by the end of 1Q 2012. In addition, Songas is making good progress with its Expansion Project to further increase Songo Songo infrastructure capacity to 140 MMcfd by 1 2013.

These increases in production capacity in Tanzania come at a time of growth and strengthening of Orca's management team and Board of Directors. Orca is now well positioned to fully utilize the breadth of experience and the proven skills of a team committed to take the Company to the next level.

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Aminex Spuds Well Offshore Tanzania

- Aminex Spuds Well Offshore Tanzania

Friday, June 17, 2011
Aminex plc

Aminex announced the spudding of the Nyuni-2 well, offshore Tanzania. The well spudded shortly after 00:00 hours this morning, local time, June 17.

Nyuni-2 is being drilled from a surface location on the small Nyuni Island, approximately 30 kilometers off the mainland of Tanzania, to the south of the Rufiji River delta, using the Caroil-6 land rig. The well will target the same Neocomian sandstones which form the reservoirs in the nearby Songo-Songo gas field and in the Company's own Kiliwani North gas field reservoir. An additional target is an Aptian/Albian sandstone reservoir which was logged as gas-bearing in the Nyuni-1 well, which was drilled but not tested in 2004.

Nyuni-2 will be deviated to the south-east at an angle of 29 degrees from vertical to target a bottom-hole location approximately 1.200 meters away from the island. Total measured depth is likely to be 3,325 meters and total vertical depth 2,964 meters subsea. It is estimated that drilling to target depth will take 9-10 weeks.

Nyuni-2 will be the fourth exploration well drilled in the Nyuni area by Aminex as operator, and two of the previous wells discovered gas in commercial quantities.

Significant drilling events at Nyuni-2 will be reported to shareholders when appropriate.

Partners in the well are:

• Ndovu Resources (Aminex) 65% (operator)
• RAK Gas 25%
• Bounty Oil 5%
• Key Petroleum 5%

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Tanzania Defers Offshore O&G Bidding Round until 2012

Tanzania Defers Offshore O&G Bidding Round until 2012

Monday, April 11, 2011
Dow Jones Newswires
by Nicholas Bariyo

Tanzania has postponed its fourth deep-offshore bidding round to 2012, said state oil company Tanzania Petroleum Development Corp.

The bidding round was to be opened April 12, and was expected to include 13 blocks sitting between 1,200 meters and 3,500 meters of water depth.

"The round has been postponed to give more time for preparations," TPDC said in a statement. "This will include proper demarcation of new blocks using additional new seismic."

TPDC didn't specify the exact date of the new round.

Currently, Tanzania has licensed 12 deepwater blocks and recent exploration works have encountered at least 7.5 trillion cubic feet of natural gas. The country is yet to discover commercial oil reserves.

Sebastian Shana, TPDC's principal petroleum geologist, said at least 13 new blocks have been demarcated, including new areas and relinquished acreage.

Geologists believe that Tanzanian oil and gas exploration areas share similar geological properties with Uganda's Lake Albertine Rift basin, where around 1 billion barrels of oil reserves have been discovered.

Exploration companies already licensed in Tanzania include Shell's local subsidiary Shell International, Orca Exploration, Dominion Gas and Oil, Tullow Oil and Tower Resources.

Ophir to Take Reins of Block Offshore Tanzania

Ophir to Take Reins of Block Offshore Tanzania

Thursday, April 07, 2011

Ophir Energy plc

Ophir announced that a subsidiary has entered into agreement with Ras Al Khaimah Gas Tanzania Ltd (RAKGas) to acquire a 70% interest and Operatorship of a Production Sharing Agreement (PSA) over an area designated as the East Pande Block in Tanzania. Completion of this agreement is subject to standard Government consents.

The East Pande license lies in the coastal region of southern Tanzania covering an offshore and onshore area in excess of 7,500km2. The block lies immediately to the west of Blocks 1, 3 and 4 in which Ophir has a 40% interest. Ophir has recently drilled the first deepwater wells offshore Tanzania resulting in three significant gas discoveries. The maximum water depth in the East Pande block is approximately 2,000m. The PSA was awarded to RAKGas in 2006.

In late 2010 RAKGas acquired approximately 1,800 line kilometers of 2D seismic data in the offshore section of the block. The data indicates the continuous nature of the geology between East Pande and the prospective Ophir acreage to the east. Subject to partner and Government consent, Ophir intends to acquire a new 3D seismic survey in the offshore section of the block.

Under the terms of the farm in agreement, Ophir will fund 100% of the cost of the 3D seismic survey and will reimburse certain back-costs. In the event that Ophir elects to drill, RAKGas will be carried through the drilling of the first exploration well.

Ophir and RAKGas are also partners in the Berbera PSA in Somaliland.

Ophir's New Business Director Jonathan Taylor commented, "We are delighted to extend our partnership with RAKGas to the East Pande project and to further deepen our relationship with the Government of Tanzania. With our recent exploration discoveries in Blocks 1 and 4, immediately adjacent to East Pande, we are well placed to build on this success and undertake a fast-track exploration campaign to pursue the petroleum potential of this exciting project."

Dominion Receives Block Extension Offshore Tanzania

Dominion Receives Block Extension Offshore Tanzania

Tuesday, April 05, 2011
Dominion Petroleum Ltd.

Dominion has been granted a 1 year extension to the Initial Exploration Period for its deepwater Block 7 by the United Republic of Tanzania's Ministry of Energy and Minerals.
The extension to the current period removes any obligation for the company to relinquish any portion of Block 7 until May of next year, providing Dominion with much more time to more fully evaluate the acreage before a mandatory 50% relinquishment at the close of the Initial Period.

Late last year, Dominion acquired a 3-D seismic survey on Block 7 and is presently processing these data in full while interpreting the "Fast Track" volume; the survey was initially focused on the Alpha prospect.

However, the "Fast Track" volume has led to the identification of numerous other prospects of similar scale to Alpha and final processing for the survey is likely to be completed in early May. The company may acquire new 2D, or additional 3D, data this year in the block to mature some of the additional leads and prospects identified since last year's competent persons report (CPR).

A competent persons report (CPR) prepared, in September 2010, by Energy Resource Consultants Ltd confirmed a mean prospective resource of 7Tcf of natural gas, or 1.1 billion barrels of oil, for the Alpha prospect alone. The 3D and recent drilling results in the area have positively impacted the prospectivity of Block 7 in a material way.

In granting the extension, the Ministry noted Dominion's good working track record in Tanzania. The additional time means that Dominion can continue to assess the whole of block, and possibly acquire more data, to better decide how to proceed toward drilling.
Andrew Cochran, Chief Executive of Dominion Petroleum, commented, "We thank the Government of Tanzania for granting us this extension. It is a validation of the technical work we have done to date and reflects the huge scale in terms of prospectivity that Block 7 represents.

"The extension of the license will allow us to better formulate plans on a drilling program for our deepwater East Africa portfolio in 2012. As the area becomes more and more competitive by the day our position becomes more and more strategic."

Ophir Drills Third Gas Discovery Offshore Tanzania

Ophir Drills Third Gas Discovery Offshore Tanzania

Monday, April 04, 2011
BG Group plc

BG Group announced its third Tanzanian gas discovery with the Chaza-1 well, located in Block 1 approximately 18 kilometers offshore southern Tanzania in a water depth of around 950 meters. The discovery is some 200 kilometers south of BG Group's Pweza and Chewa discoveries, previously announced.

The three successful wells so far drilled by the joint venture of BG Group (60%) and Ophir Energy plc (40% operator) form part of an initial work program planned for Blocks 1, 3 and 4 offshore Tanzania. The initial work program also includes the acquisition of a minimum of 4,000 square kilometers of 3D seismic data. BG Group has the option to assume operatorship of all three blocks upon completion of the initial work program.

To date in 2011, a 3 200 square kilometer 3D seismic survey has been acquired in Blocks 3 and 4, and a second 3D survey of 1 800 square kilometers is nearing completion in Block 1. It is intended that a second drilling campaign will commence in late 2011.