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Ahead of this year's African Energy Week (AEW) (https://AECWeek.com) conference and exhibition -- taking place in
Raising Capital for oil and gas projects in the energy transition era requires innovative financing mechanisms. What strategies is
Raising capital for oil and gas projects has been challenging, particularly in the exploration space, which comes with high risk and no guarantee of achieving success and making a discovery. We have been very fortunate to have had excellent support from our shareholders who have funded our exploration activity to date. Post the gas-condensate discovery at Mukuyu-2 we have now de-risked the asset and -- with a tangible resource base -- it opens additional options for the company to fund the future work program. We have a high amount of equity in our licence (80%), and it provides us with flexibility on a number of fronts. These options include farming out an interest to other E&P companies, financing from regional development banks, strategic local investors that are positioning to become a part of a new industry in
The Mukuyu-2 well has been safely suspended along with the Rig 202 stacked at the wellsite in preparation for a future flow test. The flow test design work is being undertaken to determine the long leads and mobilisation plan for the test given the relatively remote location. We are also planning a 3D seismic survey over the Mukuyu field, which will assist in determining future appraisal and development well locations for an early phase development.
With regards to a development plan, we envisage Mukuyu to be a phased development consisting of an initial pilot project to provide early revenue and demonstrate proof of concept. That will be followed by a more traditional full field development plan to commercialise a large volume of gas through gas-to-power, gas to fertiliser and feedstock for industrial customers as well as small scale LNG and compressed natural gas for end users that are not proximal to the pipeline network.
We see gas playing a critical role in the industrialisation of the country and gas-to-power is probably the biggest opportunity in
Due to our proximity to the electricity network, through a gas-to-power development we can utilise the grid as a virtual pipeline to deliver electrons to end users which significantly reduces development cost and timeline of the initial phases of full field development.
Does
We do have ambitions to expand regionally dependent upon the ultimate reserves from our licence area as there is a significant power and gas shortfall in
There is also an opportunity to export gas to
AEW is a fantastic event that is growing and getting better every year and we are looking forward to building on the relationships that we have established in previous years as well and the new ones that will undoubtedly be formed. There are always new ideas sparked by panels and presentations and new business opportunities generated from conversations.
Whilst we can't reveal any deals or announcements as of yet, given our activity and ambition to drive our project ahead there will definitely be some news for us to deliver at the conference.
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Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.
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