Aminex in Tanzania

Aminex has been working in Tanzania since 2001. Four exploration wells have been drilled, two of which encountered commercial quantities of natural gas. Kiliwani North-1 tested gas at 40 million cubic feet/day and is being developed for commercial production.

Aminex participates in Tanzania through a wholly-owned local subsidiary, Ndovu Resources Ltd. which has interests in two Production Sharing Agreements (“PSA”) and one Development Licence:

The Nyuni PSA adjoins the producing Songo-Songo gas field which is linked to Tanzania’s principal city, Dar es Salaam, by a 200 km gas pipeline, access to which Ndovu is entitled under its PSA. There is a growing market for natural gas in Dar es Salaam which Aminex plans to access though the Songas pipeline.

An independent assessment of the Nyuni PSA area reports the potential for 2.8 TCF natural gas in place from an aggregation of several prospects, calculated on a P_mean basis and including both contingent and prospective resources.

To the north-east of the Nyuni PSA area, major international oil company Petrobras is drilling its first well in East Africa, on the Alpha Prospect in deep water. Directly east of the Nyuni PSA, Ophir/BG have made three gas discoveries in deep water.

The Ruvuma PSA comprises two adjoining licences, Lindi and Mtwara, in the extreme south-east corner of Tanzania. This PSA spans 12,000 km² of which roughly 80% is onshore and 20% offshore. Ndovu originally held 100% of the Ruvuma PSA and subsequently farmed it down to Tullow Oil and Solo Oil. The Likonde-1 well drilled in 2010 established the presence of oil, gas and a substantial reservoir section but was not a commercial discovery. Subsequent to the Likonde well, Ndovu acquired part of Tullow's equity in the block and took over as Operator in October 2011. Ndovu will drill the second well Ntorya-1 in Q4 2011. Ndovu now holds 56.25% in the PSA.

The Ruvuma River is the frontier between Tanzania and Mozambique with high potential for oil and gas on both sides of the border, onshore and offshore. The Ruvuma basin is one of the last under-explored major river deltas in Africa and currently subject to a high level of exploration activity. Exxon-Mobil and BG are new entrants while Anadarko has an ongoing drilling programme in Mozambique. Aminex-Ndovu and partners hold the rights to virtually all the prospective onshore acreage on the Tanzanian side of the river.

Aminex is the first company ever to have taken a PSA through its full term in Tanzania and is the first to have been awarded a development licence for a totally new discovery in over thirty years.

As part of Aminex’s commitment to Tanzania, it is the instigator and a co-founder of OGAT, the Oil and Gas Association of Tanzania. OGAT has 14 oil company members and is the principal interface between the government of Tanzania and the oil industry. Ndovu’s Managing Director is the honorary Consul for Tanzania in Australia. Ndovu's Country Manager is the Honorary Consul for Australia in Tanzania. Aminex and Ndovu recognise the urgent social needs of a developing country such as Tanzania and play an active part in charitable work in-country, supporting surgical missions (www.asanterafiki.com) as well as improvements to schools, education and access to fresh water (www.youngambassadors.com.au).