The find, on Songo Songo Island 15 km off the mainland and 200 km south of the capital Dar Es Salaam, was made in 2007. Bounty has 10% interest in partnership with Aminex.
The single-well discovery has certified reserves of 45 bcf of gas. It lies just 2 km from the large Songo Songo field gas plant that in turn is connected to the mainland and the key Ubungo power plant that generates about 50% of Tanzania’s electricity capacity.
Bounty says the Songo Songo gas plant has undergone a recent upgrade to cater for the increased demand for gas-fired electrical power in the country. The connection of Kiliwani North-1 to the plant and trunkline is nearing completion and Bounty’s production is expected to flow at between 20-30 MMcfd.
Finalization of a gas sales agreement is pending.
Bounty also has a 5% interest in the Nyuni block immediately offshore where a number of anomalies and leads have been found. A 3D seismic survey is planned to focus on deep water turbidite plays with potential to hold at least 1 tcf of reserves. In addition, there are shallow targets within a relatively short distance of Songo Songo Island.
In 2003-04 Bounty participated in the drilling of Nyuni-1/1A from Nyuni Island to test a Songo Songo style prospect. The 1A well found oil indications but ran into mechanical problems. It was suspended for reentry at a later date.
Cash flow from Kiliwani-1 will help fund the company’s share of the forthcoming program.