Exploration Opportunities in Tanzania: Why Aminex …admin.aminex-plc.com/uploadfiles/130522_AGM...

AGM PRESENTATION 22nd MAY 2013

Exploration Opportunities in Tanzania:

Why Aminex believes in the potential of the Nyuni and Ruvuma PSAs

Presentation to shareholders, Aminex PLC AGM, Dublin, Ireland, 22nd May 2013

o Aminex has been in Tanzania since 2002

when the East African Coastal Margin was

only a lightly explored backwater.

o Aminex has drilled 6 wells including 2

commercial discoveries, one of which is

developed and ready to produce.

o The Company’s acreage includes (1)

onshore, (2) shallow water offshore and

(3) deep water offshore environments.

o Since 2010 there have been multiple

world-class deep water gas discoveries in

the region, some directly offsetting both of

Aminex’s PSA areas.

o Aminex has consistently believed in the

vast potential of the East Africa Coastal

Margin which is summarised in this short

technical presentation. Recent published hydrocarbon discoveries,

Tanzania and northern Mozambique

Introduction


Onshore, Nearshore Successes

o Mafia Basin/Rufiji Delta, Tanzania:

• Songo Songo (1974)

• Mukuranga (2006)

• Kiliwani North (2008)

o Ruvuma Basin, Tanzania and northern

Mozambique:

• Mnazi Bay (1982)

• Ntorya-1 (2011)

o Sample analyses made available to

Aminex provide information on the

potential for oil as well as for gas.

Introduction

Mafia/Rufiji

Basin

Ruvuma

Basin


o The deepwater exploration success along the East African Coastal Margin

demonstrates the exploration potential that may exist onshore and on the nearshore

shelf.

o High quality (3D) seismic in the open marine deepwater environment is the main cause

for recent success.

o Recent improvements in 2D seismic acquisition and processing on the marine shelf and

onshore confirms the presence of similar traps and their significant but as yet

unexplored and unexploited potential.

Regional Geological Setting and Prospectivity


o Ntorya, along with most leads within the Ruvuma PSA, and post-Neocomian leads within

Nyuni PSA are part of the same play fairway as the recent deepwater discoveries.

o Historically structural prospects have been drilled along the coastal margin with only limited

success. With the aid of improved seismic, Aminex is focusing on the significant

stratigraphic potential that can now be imaged and which has proven so successful in the

deepwater.

Anadarko, BG & Statoil’s

deepwater gas

discoveries,

60-103 Tcf.

ENI’s deepwater gas

discoveries,

27-75 Tcf.

Ntorya onshore gas

discovery, 1.2 Tcf

discovered and

undiscovered

Mnazi Bay Gas Field,

~830 Bcf Pmean

recoverable

contingent

Late Tertiary uplift

in response to

East African Rift

Kiliwani North gas field,

45 BcfPmean GIIP

discovered




o Ntorya, along with most leads within the Ruvuma PSA, and post-Neocomian leads within

Nyuni PSA are part of the same play fairway as the recent deepwater discoveries.


o Virtually all recent major gas discoveries

have been in the (deepwater) offshore,

where most of the recent 2D and 3D

seismic has been acquired.

o This is because of the ease of access in

open marine deepwater environments for

acquiring high quality seismic with minimal

logistic difficulties, and sufficient quality to

de-risk prospects prior to drilling.

o Nearshore and onshore is subject to more

complex and costly logistics for alternative

methods of appropriate seismic

acquisition.

Exploration Progress


Exploration Progress

o Most of the Nyuni legacy data (all 2D) has

a limited “maximum offset” of <1,500m.

o The 2005 dataset has a 3,000m maximum

offset. Careful reprocessing allows a

major improvement in imaging, to better

de-risk prospects prior to drilling.

o Deepwater/open marine 2D and 3D

seismic commonly has a maximum offset

of 8,000m.


o Advanced processing and imaging

technologies applied to state-of-the-art 2D

and 3D seismic in an unrestricted

deepwater marine environment enables

much greater confidence in de-risking

prospects pre-drill.

o However, similar acquisition and

processing methods cannot be employed

in the onshore and nearshore

environments.

o Recent work by Aminex on 2D seismic

onshore and on the marine shelf is

beginning to image detail with confidence

but most such prospects remain untested

by drilling.

Seismic profile across Block 1, offshore

Tanzania, showing intraslope channel plays

(from Ophir Energy AGM, June 2012).

SSE NNW

Exploration Progress and Prospectivity

o Most recent discoveries on- and offshore are primarily stratigraphic and not structural.

o Early wells were drilled with limited seismic on simple structural features. Such prospects

include Songo Songo, Mnazi Bay, Latham Island, Nyuni, etc.


o Songo Songo-1 in 1974 promoted

structural plays and the potential for

productive Neocomian-age reservoir

sands.

o Albian sands as at Ntorya of good

reservoir quality are stratigraphically

controlled - their presence in structural

traps is highly variable.

o Previously, stratigraphic complexity has

been hard to image and interpret with

confidence on seismic in the absence of

well data.

Seismic cross-section across Songo Songo

gas field, offshore Tanzania; (structural trap).

Seismic cross-section across Ntorya gas

discovery, Ruvuma basin, onshore Tanzania;

(stratigraphic trap).



2D Seismic Dip Line 89MT-10, onshore Northern

Ruvuma Basin.

o Previous onshore exploration was focused on

identifying large structural closures and

seismic coverage was coarse.

o Limited contractor availability and high costs

did not encourage higher data densities.

o Little stratigraphic potential could be

recognised or de-risked sufficiently to justify

drilling.

Upper Cretaceous Lead D as

mapped by Texaco, 1992, cf Sudi

Lead 2012.

(Areal closure of Lead D at Top Cretaceous

was estimated at approx. 170.4km2, with

800ft of vertical closure (Texaco 1992).

Remapped as Sudi Lead by Aminex in

2012.)



o The Kiswa and Sudi Base Tertiary channel

complex leads in the Ruvuma PSA are now

clearly imaged on reprocessed data.

o They appear analogous to BG/Ophir’s

Jodari Base Tertiary gas discovery (GIIP

estimated at ~4.5 Tcf), 25 km to the West in

the deepwater.

o Kiswa Lead appears to have a similar multi-

channel complex appearance as Jodari.

Source : Ophir website, Capital Markets presentation, 2012

Kiswa Leads, Offshore Ruvuma PSA



o The Sudi Lead (onshore

Ruvuma) is part of the

same Base Tertiary

channel complex as the

offshore Kiswa Lead.

(Onshore)

(Offshore)



Exploration Prospectivity

o Since the success of Aminex’s

Ntorya-1 gas discovery, mapping of

the Ruvuma PSA has identified

further stratigraphic leads not

previously recognised with

confidence from available 2D

seismic.

o Aminex is planning new 2D seismic

in the Ruvuma PSA to better define

and de-risk the stratigraphic

potential, as well as to appraise the

Ntorya-1 discovery.

Ruvuma PSA: Lead map of mainly

stratigraphic leads, identified from seismic

post-Ntorya-1 well.


Exploration Prospectivity

o Tanzania has signed a $1.2 billion finance

package with the Chinese Export Bank for

gas infrastructure which will include:

• 450 km 36” pipeline from Ruvuma

Basin to Dar es Salaam.

• 25 km 24” pipeline from Songo Songo

Island to main pipeline.

• New gas processing plants on Songo

Songo Island, and near Mtwara –

approx. 30 km from Ntorya-1.

o This pipeline will provide access to market

for both Aminex’s Kiliwani North gas Field

and Aminex’s Ntorya-1 gas discovery

o Pipeline project due onstream end 2014.

Tanzanian Coastal Pipeline


o The deepwater acreage in the Nyuni PSA is of potentially significant exploration

interest and 3D seismic is planned for this year.

o New appraisal seismic at Ntorya (Ruvuma) will provide well control and identify

locations for appraisal drilling on the path to commercialisation.

o Ruvuma is a vast licence which contains a number of large leads in addition to the

Ntorya discovery.

o Further seismic at Ruvuma will de-risk these leads to convert them to drillable

prospects.

o With a major new pipeline project under way and strong demand for natural gas,

Ntorya and discoveries at Ruvuma will be important components of Tanzania’s

short to medium term energy needs.

o Aminex’s intention is to unlock the prospectivity of the Nyuni and

Ruvuma PSAs.

Summary


Ntorya-1, Ruvuma PSA, flowing 139 bpd condensate and 20MMcfd on test through a 1” choke, June 2012.

Exploration Opportunities in Tanzania: Why Aminex …admin.aminex-plc.com/uploadfiles/130522_AGM...

Documents

Transcript of Exploration Opportunities in Tanzania: Why Aminex …admin.aminex-plc.com/uploadfiles/130522_AGM...