Dar es Salaam, Tanzania — ESI-AFRICA.COM — 12 October 2011 – Shares in oil and gas explorer Aminex have plummeted more than 40% since the company revealed that it had suspended operations on its exploration well off the coast of Tanzania.
In a statement released here, the company blamed ‘extreme drilling conditions’ due to obstructions at the base of the well bore for the problems. And yet despite the hold-up, Aminex said the Nyuni prospect was still one of its prime exploration targets.
“Obstructions at the base of the well bore were to blame as attempts to drill them out failed, as did a plan to drill around the obstructions using a side-track motor,” the company reported.
The well had been drilled to 3,450m and cased to 2,945m.
”The Nyuni-2 well bore remains available for re-entry at a later date,” Aminex added.
Once work is complete at Nyuni Island, the rig will be mobilised to the Ruvuma Basin in southern Tanzania, where Aminex expects to spud the Ntorya-1 well towards the end of this year.
“Aminex has persevered with this well for longer than anticipated, but has now agreed with its partners that the high cost of continuing cannot be justified, given the low probability of overcoming the technical difficulties in a timely and cost-efficient manner,” chief executive Stuard Detmer noted in a statement.
“We will now review both the geological information gained and possible solutions to the operating conditions encountered without incurring further drilling costs at this stage,” he added.