The statement comes from their newly released Interim Management Statement (IMS) for the period 1 July to mid-November 2012.

Early in the reporting period Aminex published the results of an independent technical evaluation of the Ruvuma and Nyuni Area production sharing agreements (PSAs). The study attributed 11.4 Tcf total discovered and undiscovered mean gas initially in place for the two licences combined, with 5.75 Tcf attributed to the Ruvuma PSA and 5.67 Tcf to the Nyuni Area PSA. The total 11.4 Tcf estimate represents the equivalent of 1.9 Bbbl.

Concurrently, the Tanzanian Government announced the launch of construction of a 36 inch diameter pipeline which will pass through the Ruvuma PSA, the site of the company's Ntorya-1 discovery, to Dar es Salaam with a 24 inch diameter spur line to Songo-Songo Island where Aminex and partners have a development licence for the 45 Bcf Kiliwani North discovery. The new pipeline and associated gas processing facilities are expected to be commissioned in the first half of 2014 and will provide a direct route to market for gas from Aminex's two discoveries.

In addition to above, Aminex held talks with the Tanzanian state oil company in early November regarding the technical engineering design for tying in Aminex's Kiliwani North-1 (KN-1) gas well to the planned gas processing facility on Songo-Songo Island and pipeline to Dar es Salaam.

Article continues below…

Aminex had previously completed the engineering design for the local 6 inch pipeline connecting KN-1 to the existing local gas processing facility and the 6 inch pipe has already been purchased and delivered to Tanzania. Only minor adjustments to the design will be required to enable the tie-in to the new gas processing facility.

The new Songo-Songo gas processing facility and pipeline are now expected to be commissioned and put into operation in the first half of 2014, providing Aminex with a route to monetisation of KN-1 gas. Kiliwani North holds discovered mean gas initially in place of 45 Bcf and the tie-in is designed to handle an optimum production level of 20 MMcf/d.

Aminex CEO Stuard Detmer said "With over 11.4 Tcf of discovered and undiscovered potential in our Tanzanian properties, Aminex is implementing an aggressive seismic exploration programme to develop existing leads and target upcoming drilling both onshore and in the deep water.

“The Tanzanian Government's forward-looking pipeline project is progressing and will connect Aminex's two existing discoveries at Ruvuma and Kiliwani North to the key natural gas market in Dar es Salaam, providing a clear route to monetisation in 2014.”