Aminex PLC Corporate Update (8143W)
August 24 2015 - 02:00AM
UK Regulatory
TIDMAEX
RNS Number : 8143W
Aminex PLC
24 August 2015
Aminex plc
("Aminex" or "the Company")
CORPORATE UPDATE
Aminex today announces a reorganisation and continuation of its
Egyptian interests through a conversion of its carried interest to
first production into an overriding royalty position in a recent
discovery well. Aminex is currently a 12.5% shareholder in Aminex
Petroleum Egypt Ltd. ("APEL") and, through this shareholding, has
an indirect 10% carried interest in the West Esh el Mellahah-2
("WEEM-2") production sharing contract ("PSC") in Egypt.
KEY POINTS OF EGYPTIAN TRANSACTION:
-- Opportunity for the Company to achieve revenues;
-- No exposure to development and operating expenditure; and
-- Risk free upside
Four exploration wells have been drilled in the WEEM-2
concession since 2006. The first two exploration wells were
abandoned as dry holes and the third well was abandoned after
recovering limited quantities of crude oil to surface. The fourth
well, South Malak-2 ("SM-2"), drilled in 2014 as a sole risk well
by a fellow participant, resulted in a discovery of oil, which has
now been declared commercial.
Until now, Aminex's interest was free-carried through to first
production but if production could be established, Aminex would
have been required to meet ongoing licence costs and repay its
free-carry in full prior to receiving its share of production
revenues.
In order to optimise the Company's commercial interest in the
discovery, over which it has no operational control, Aminex has
agreed to sell its shareholding in APEL to fellow shareholder
PetroSino together with its indirect carried interest. Details of
the transaction are as follows:
-- Aminex will sell its shareholding in APEL to PetroSino for a nominal sum;
-- In return, PetroSino will grant a 1% gross overriding royalty
to Aminex on the full sales value of its share of production from
SM-2, commencing after recovery of $2.5 million drilling costs;
-- APEL's name will be changed to a new name unrelated to the 'Aminex' brand; and
-- Aminex will no longer be represented on the APEL board of directors.
Aminex Chief Executive, Jay Bhattacherjee, commented:
"The Board of Aminex is pleased with the result of today's
reorganisation of its Egyptian interests which provides the best
opportunity for the Company to achieve revenues from the WEEM-2
concession, with no exposure to further development capital.
Meanwhile, in Tanzania we can report that good progress is now
being made in concluding payment protection terms for gas producers
after a long delay and the Tanzania Petroleum Development
Corporation advised us late last week that our Gas Sales Agreement
('GSA') for Kiliwani North can be concluded in the near future,
enabling gas from the field to be sold into the pipeline system
soon afterwards."
For further information:
Aminex PLC +44 20 7291 3100
Jay Bhattacherjee, Chief
Executive Officer
Max Williams, Chief Financial
Officer
Corporate Brokers
Shore Capital Stockbrokers-Jerry
Keen +44 20 7408 4090
Davy Corporate Finance-Brian
Garrahy +35 3 1679 7788
GMP Securities Europe
LLP-Rob Collins +44 20 7647 2816
Yellow Jersey PR (Financial
PR) +44 7768 537 739
Dominic Barretto
Kelsey Traynor
This information is provided by RNS
The company news service from the London Stock Exchange
END
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