OPERATIONS

Key, Bounty enjoy Tanzanian riches

PERTH-based juniors Key Petroleum and Bounty Oil & Gas have flowed 40 million cubic feet of gas p...

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The flow also includes condensate content of about 1 barrel per MMcf and well-testing operations at Kiliwani North-1

"This is a fantastic result for Key and the joint venture," Key managing director Ken Russell said.

"The fact that the gas contains no impurities such as H2S or CO2 demonstrates clearly that the gas in Kiliwani North-1 is compatible with the gas now being produced from the nearby Songo Songo field."

He added that the joint venture could now start accelerating the commercial development of the Kiliwani North field.

"Under the Nyuni production-sharing agreement with the Tanzanian Government, gas from Kiliwani North can be processed and delivered into the local gas market using the existing, under-utilised gas pipeline, providing Key and its co-venturers with a fast and economical route into commercial gas production," Russell said.

Kiliwani North-1, the second well in the JV's two-well drilling program, had discovered a 60m gross gas column in the Neocomian sandstones, the same producing reservoir as in the nearby Songo Songo gas field.

The earlier Kiliwani-1 well, which was also drilled by the Caroil-6 rig, was unsuccessful.

Operator of the two-well program is Ndovu Resources, with a 39% stake, while Key holds 20% and Bounty has 6%.

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