TIDMAEX
RNS Number : 1413W
Aminex PLC
25 April 2016
25 April 2016
FINAL RESULTS for year ended 31 december 2015, ANNUAL REPORT
and NOTICE OF MEETING
Aminex PLC ('Aminex' or the 'Company') is pleased to announce
its final results for the year ended 31 December 2015 and the 2015
Annual Report is available on the Company's website,
www.aminex-plc.com, and may be viewed by clicking on the following
link:
http://www.rns-pdf.londonstockexchange.com/rns/1413W_-2016-4-24.pdf
HIGHLIGHTS
During 2015:
-- Gas Sales Agreement signed effective 31 December 2015
-- Sale of 6.5% interest in Kiliwani North to Solo Oil for $3.5 million
-- Regional gas pipeline completed with sales line connected to Kiliwani North
-- Drilling and development plan moving forward for Ruvuma
-- Planning for Ntorya-1 recompletion and Ntorya-2 appraisal drilling, expected during 2016
-- Nyuni Area deep water potential reassessed
-- Technical team strengthened
-- Ongoing restructuring and cost monitoring
Looking ahead:
-- 2016 will be the year when Aminex begins to reap rewards from
a decade of exploration and development in Tanzania with first
production from Kiliwani North, booking its first reserves in
country.
-- In a difficult market favourable opportunities may present
themselves and the Company is actively engaged in looking for
production and development led opportunities.
The Annual General Meeting of the Company will be held at 11:00
am on 18 May 2016 at:
The Building
Centre
26 Store Street
London WC1E
7BT
The Notice of Annual General Meeting, including the Form of
Proxy, is also be available on the Company's website, together with
a copy of the Company's Memorandum and Articles of Association with
amendments arising primarily from the Companies Act 2014, which are
being proposed as resolutions at the Meeting. Details of the
amendments are provided in the Notice of Annual General
Meeting.
Paper copies of the Annual Report, the Notice of Annual General
Meeting and the Form of Proxy are being mailed to those
shareholders who have elected to receive paper copies.
In accordance with Irish Listing Rule 6.6.1 and UKLA Listing
Rule 9.6.1, a copy of the Annual Report has been submitted to the
Irish Stock Exchange and to the UK's National Storage Mechanism. It
will shortly be available at:
Company Announcements
Office
Irish Stock Exchange
28 Anglesea Street
Dublin 2
Ireland
and at:
www.morningstar.co.uk/uk/NSM
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, Brian Garrahy +353 1 679 6363
Camarco +44 20 3757 4980
Billy Clegg
Gordon Poole
Chairman's Statement
Dear Shareholder
Herewith are Aminex's results for the year ended 31 December
2015. The Group made a loss for the financial year of $3.78 million
(2014: $7.01 million).
During the year Aminex negotiated a long-awaited gas sales
agreement for the Kiliwani North field and completed a partial
disposal of its interest in the field which enabled it to retire a
portion of its corporate debt. It also converted an Egyptian
carried working interest into a royalty arrangement. The
transaction for the Egyptian asset has transformed a potential work
obligation into a potential future revenue stream. As the Board has
previously stated that it does not intend to commit further funds
to its Moldova asset in the near term, Aminex's activities are now
exclusively concentrated on its Tanzanian gas projects, all of
which it operates. The Company is consequently not directly
affected by the current slump in world oil prices as it will be
producing gas at a pre-agreed price for power generation.
This time last year I forecast that Aminex would be producing
Tanzanian gas in 2015 but events outside the control of the Company
prevented this from occurring. However, since the year end we have
signed a formal Gas Sales Agreement with the Tanzania Petroleum
Development Corporation ('TPDC') and, at the time of writing,
Kiliwani North gas is producing commissioning gas.
Our next step will be to build on our earlier success in the
Ruvuma area with follow-up drilling this year. We expect to spud a
new well, Ntorya-2, to offset and appraise the Ntorya-1 discovery
during the course of this summer with an additional well, Ntorya-3,
also being planned to test the main channel system. Once Ntorya-2
has been drilled, Aminex expects to apply for a development licence
for the prospect, opening the way for the Company to produce from
not one but two separate Tanzanian fields in the foreseeable
future.
Past months have not been easy in our sector in general but
Aminex has successfully weathered many storms in the past and we
expect to do so in the future. Tough times can present openings for
flexible, smaller companies which are not always available when the
markets are strong and when larger players are ready to pay very
high prices for assets. Aminex's management team is ever vigilant
for such opportunities.
May I express your Board's appreciation for the continuing
support we have received. Perseverance and patience usually pay in
the long run and we are grateful to those who have stayed with us.
This year's AGM will be held in London on 18 May and we hope to
meet as many of you as possible on that occasion.
Yours sincerely,
Brian Hall
Chairman
Chief Executive's Review
Aminex has now become an African producer for the first time and
this will transform the Group. The team continues to explore and
maximise the prospectivity of the Group's assets in preparation for
production and the development of the onshore Ruvuma Basin, where
the Company has an existing discovery.
Tanzania
The major new regional gas pipeline developed by the Tanzania
Petroleum Development Corporation ('TPDC') was under construction
throughout 2015 and is now receiving Kiliwani North commissioning
gas. The pipeline provides a commercialisation route for Kiliwani
North gas and opens up the potential for commercialisation of the
Company's Ntorya discovery and any other discoveries which may be
made in the Company's onshore Ruvuma Basin acreage.
Kiliwani North is being used to commission the Songo Songo Gas
Processing Plant and, once commercial rates have been established,
is expected to produce initially at a rate of 25-30 MMcfd. The
Company will sell gas directly at wellhead for a price of $3.07 per
MCF and will be paid in US Dollars with payment guarantees in
place.
During 2015 the Company completed a new seismic programme in the
vicinity of its Ntorya-1 discovery on the Ruvuma PSA acreage. The
programme was designed to identify the channel fairway associated
with the Tertiary and Cretaceous reservoirs where Ntorya-1 tested
gas at 20 MMcfd with 139 barrels of associated condensate. The
seismic programme was completed on time and within budget. The
Company currently has an obligation to drill a minimum of four
exploration wells by the end of 2016 but is in discussions with the
TPDC to focus resources on the development of Ntorya with a view to
accelerating the supply of gas into the new regional pipeline
system. Should the Company have success in its appraisal and
development drilling programme in the Ruvuma Basin, any further gas
discovered can be commercialised through the new pipeline.
At the Nyuni Area PSA, the Company will focus exploration
activity on the deep water sector of the licence. The Tanzanian
authorities have agreed to replace a commitment to acquire 2D
seismic in the shallow zones with 3D seismic in the deep water
sector. This will enable the acquisition of up to 700 square
kilometres of new 3D seismic in the deep water. As part of this
approval, a two-well commitment due to be carried out in 2015 has
been deferred into the next exploration phase which expires in
October 2019.
Other assets
Since 2014, the Aminex Board has sought to focus the Group's
resources on its key production, development and appraisal assets
in Tanzania by reducing commitments in other regions. In 2015, the
Group converted its interest in the West Esh el Mallaha-2
('WEEM-2') concession in Egypt to a 1% gross overriding royalty in
the South Malak-2 discovery, thereby eliminating future capital
expenditure in a small non-operated interest. The Group's interest
in Moldova does not give rise to any capital commitments. In the
current low oil price environment the Company has decided to impair
the carrying value of the Moldova interest.
Evaluation of New Opportunities
The Company's management and technical team continue to evaluate
and analyse new production-led business opportunities with the aim
of creating a larger and stronger base for its activities,
balancing risk against opportunity.
Looking Forward
This is a very promising time for the Company. Its first
commercial production from Kiliwani North will help meet the
Group's ongoing overhead expenses, which continue to be monitored
closely, and assist with further debt retirement. The planned
appraisal of the Ntorya discovery offers considerable growth
potential for the Group. After drilling the Ntorya-2 appraisal
well, Aminex plans to apply for a licence to fast-track development
of the Ntorya field so as to monetise gas discoveries through the
new gas infrastructure. Aminex is also in discussions with the TPDC
to identify opportunities for an early production system from
Ntorya-1 and Ntorya-2.
I would like to thank our staff and all those that have been
associated with the Company's progress for their consistent hard
work and our shareholders for their continued support.
Jay Bhattacherjee
Chief Executive
Group Income Statement
(MORE TO FOLLOW) Dow Jones Newswires
April 25, 2016 02:00 ET (06:00 GMT)
for the year ended 31 December 2015
2015 2015 2014 2014
US$'000 US$'000 US$'000 US$'000
Continuing operations
Revenue 350 444
Cost of sales (341) (412)
--------- ---------
Gross profit 9 32
Administrative expenses (1,615) (2,795)
Depreciation of other assets (15) (9)
--------- ---------
(1,630) (2,804)
--------- ---------
Loss from operating activities
before other items (1,621) (2,772)
Gain on disposal of development 1,772 -
asset
Reduction in fair value of (968) -
other receivables
Impairment provision against (353) -
exploration and
evaluation assets
Impairment provision against
assets held for sale (850) (622)
Impairment loss on available
for sale assets (68) (243)
Loss on disposal of available (7) -
for sale assets
--------- ---------
Loss from operating activities (2,095) (3,637)
Finance income 3 11
Finance costs (1,686) (2,239)
--------- ---------
Loss before tax (3,778) (5,865)
Income tax expense - -
--------- ---------
Loss from continuing operations (3,778) (5,865)
Discontinued operations
Loss from discontinued operations - (1,143)
--------- ---------
Loss for the financial year
attributable to equity holders
of the Company (3,778) (7,008)
--------- ---------
Basic and diluted loss per
Ordinary Share (in US cents) (0.20) (0.41)
--------- ---------
Basic and diluted loss per
Ordinary Share (in US cents)
- continuing operations (0.20) (0.34)
--------- ---------
Group Statement of Other Comprehensive Income
for the year ended 31 December 2015
2015 2014
US$'000 US$'000
Loss for the financial year (3,778) (7,008)
Other comprehensive income:
Items that are or maybe reclassified
to profit or loss:
Currency translation differences (293) (19)
--------- ---------
Total comprehensive income for
the financial year attributable
to equity holders of the Company (4,071) (7,027)
--------- ---------
Group and Company Balance Sheets
at 31 December 2015
Group Company
2015 2014 2015 2014
US$'000 US$'000 US$'000 US$'000
ASSETS
Exploration and evaluation
assets 79,864 78,734 - -
Property, plant and
equipment 12,416 13,510 - -
Investments in subsidiary
undertakings - - 5,207 6,603
Amounts due from subsidiary
undertakings - - 93,960 95,012
Available for sale
assets 22 107 22 107
Trade and other receivables 1,950 2,800 1,950 2,800
--------- --------- --------- ---------
Total non-current
assets 94,252 95,151 101,139 104,522
--------- --------- --------- ---------
Assets held for sale - 850 - -
Trade and other receivables 606 1,217 52 313
Amounts due from subsidiary
undertakings - - 660 1,363
Cash and cash equivalents 2,128 1,765 429 617
--------- --------- --------- ---------
Total current assets 2,734 3,832 1,141 2,293
--------- --------- --------- ---------
Total assets 96,986 98,983 102,280 106,815
--------- --------- --------- ---------
LIABILITIES
Current liabilities
Loans and borrowings (8,559) (10,218) (8,559) (10,218)
Trade and other payables (3,103) (1,863) (53) (51)
--------- --------- --------- ---------
Total current liabilities (11,662) (12,081) (8,612) (10,269)
--------- --------- --------- ---------
Non-current liabilities
Decommissioning provision (448) (425) - -
--------- --------- --------- ---------
Total non-current
liabilities (448) (425) - -
--------- --------- --------- ---------
Total liabilities (12,110) (12,506) (8,612) (10,269)
--------- --------- --------- ---------
NET ASSETS 84,876 86,477 93,668 96,546
--------- --------- --------- ---------
Equity
Issued capital 67,192 67,094 67,192 67,094
Share premium 96,036 93,505 96,036 93,505
Capital conversion
reserve fund 234 234 234 234
Share option reserve 3,683 3,891 3,683 3,891
Share warrant reserve 3,054 3,031 3,054 3,031
Foreign currency translation
reserve (1,459) (1,166) - -
Retained earnings (83,864) (80,112) (76,531) (71,209)
--------- --------- --------- ---------
84,876 86,477 93,668 96,546
--------- --------- --------- ---------
Group Statement of Changes in Equity
for the year ended 31 December 2015
Attributable to equity shareholders of
the Company
Share Share Capital Share Fair Foreign Retained Total
capital premium conversion option value currency earnings US$'000
US$'000 US$'000 reserve reserve warrant translation US$'000
fund US$'000 reserve reserve
US$'000 US$'000 US$'000
At 1 January
2014 65,629 79,431 234 3,891 2,535 (1,147) (73,104) 77,469
Transactions
with shareholders
recognised directly
in equity
Shares issued 1,465 14,074 - - (211) - - 15,328
Share warrants
granted - - - - 707 - - 707
Comprehensive
income:
Currency translation
differences - - - - - (19) - (19)
Loss for the
financial year - - - - - - (7,008) (7,008)
--------- --------- ------------ --------- --------- ------------- ---------- ---------
At 1 January
2015 67,094 93,505 234 3,891 3,031 (1,166) (80,112) 86,477
Transactions
with shareholders
recognised directly
in equity
Shares issued 98 2,531 - - - - (182) 2,447
Share option
reserve adjustment - - - (208) - - 208 -
Share warrants
granted - - - - 23 - - 23
Comprehensive
income:
Currency translation
differences - - - - - (293) - (293)
Loss for the
(MORE TO FOLLOW) Dow Jones Newswires
April 25, 2016 02:00 ET (06:00 GMT)
financial year - - - - - - (3,778) (3,778)
--------- --------- ------------ --------- --------- ------------- ---------- ---------
At 31 December
2015 67,192 96,036 234 3,683 3,054 (1,459) (83,864) 84,876
--------- --------- ------------ --------- --------- ------------- ---------- ---------
Group and Company Statements of Cashflows
for the year ended 31 December 2015
Group Company
2015 2014 2015 2014
US$'000 US$'000 US$'000 US$'000
Operating activities
Loss for the financial year (3,778) (7,008) (5,378) (8,616)
Depletion, depreciation and
decommissioning 15 92 - -
Impairment provision against
assets held for sale 850 872 - -
Impairment provision against 353 - - -
exploration and evaluation
assets
Provision against doubtful
debts - - - 15
Finance income (3) (11) (3) (11)
Finance costs 1,686 2,295 1,643 2,200
Gain on disposal of development (1,772) - - -
asset
Loss on disposal of available
for sale assets 7 - 7 -
Reduction in value of trade
receivables 968 - 968 -
Loss on disposal of subsidiary
undertaking - 368 - (1,769)
Impairment of available for
sale assets 68 243 85 243
Impairment provision against
intercompany loans - - 928 6,945
Impairment provision against
investment in subsidiary undertakings - - 1,397 463
Decrease in trade and other
receivables 493 1,507 136 67
Increase/(decrease) in trade
and other payables 177 (625) 3 404
--------- --------- --------- ---------
Net cash absorbed by operations (936) (2,267) (184) (59)
Interest paid (1,563) (1,179) (1,563) (1,179)
--------- --------- --------- ---------
Net cash outflows from operating
activities (2,499) (3,446) (1,747) (1,238)
--------- --------- --------- ---------
Investing activities
Proceeds from sale of development 3,325 - - -
asset
Proceeds from disposal of available 10 - - -
for sale assets
Acquisition of property, plant
and equipment (204) (234) - -
Expenditure on exploration
and evaluation assets (1,001) (7,053) - -
Decrease/(increase) in amounts
due from subsidiary undertakings - - 827 (10,468)
Loss on disposal of subsidiary
undertaking - - - (66)
Cost of disposal of subsidiary
undertaking - (368) - (368)
Interest received 3 11 3 11
--------- --------- --------- ---------
Net cash from/(used in) investing
activities 2,133 (7,644) 830 (10,891)
--------- --------- --------- ---------
Financing activities
Proceeds from issue of share
capital 2,629 14,907 2,629 14,907
Payment of transaction expenses (182 (2,205) (182) (2,205)
Loans repaid (1,718) (13) (1,718) -
--------- --------- --------- ---------
Net cash inflows from financing
activities 729 12,689 729 12,702
--------- --------- --------- ---------
Net increase/(decrease) in
cash and cash equivalents 363 1,599 (188) 573
Cash and cash equivalents at
1 January 1,765 166 617 44
Cash and cash equivalents at
31 December 2,128 1,765 429 617
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR BZLFLQZFEBBX
(END) Dow Jones Newswires
April 25, 2016 02:00 ET (06:00 GMT)
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