Amity Oil has second project in the pipeline

CLOSE to completing its 18-kilometre gas pipeline in Turkey, Amity Oil is already talking of a possible second regional pipeline project, to be decided late this year.

Amity expects to begin supplying nine million cubic feet of gas per day to two customers in the Misinli industrial area by the end of this month. The company also is pushing to commission a full production gas plant that will deliver 30 million cubic feet of gas per day from its Gocerler-1 well before the end of the year.

In addition, the Perth-based explorer and producer is planning two in-fill appraisal wells to increase production and back up Gocerler-1. A third new well, six kilometres away, will test a possibly separate structure from the others.

Total production from the Amity-Turkiye Petrolleri 50:50 joint venture wells is expected to exceed the capacity of the eight-inch pipeline being commissioned this month, prompting thoughts of a second pipeline of similar length and capacity.

Amity director and company secretary Eric Hughes said “quite a few” potential customers were willing to purchase the gas.

Gas sales in US dollars from the end of this month will allow Amity to recover its total Gocerler investment by year’s end.

At home, Amity also has plans for a pipeline. This one will connect its planned Whicher Range production to the Dampier-Bunbury natural gas pipeline at Capel.

The Whicher Range-5 drilling site has been prepared and Amity is “entertaining a fairly attractive offer” to farm in to the project, Mr Hughes said.

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