Aminex PLC Interim Management Statement - Q3 2014 (2578X)
November 18 2014 - 2:00AM
UK Regulatory
TIDMAEX
RNS Number : 2578X
Aminex PLC
18 November 2014
Aminex plc
("Aminex" or "the Company")
INTERIM MANAGEMENT STATEMENT - third Quarter 2014
Aminex PLC ("Aminex" or the "Company"), an independent oil and
gas company premium-listed on the London Stock Exchange and
primary-listed on the Irish Stock Exchange with activities focused
in Tanzania, today issues its Interim Management Statement for the
period 1 July 2014 to the date of this statement.
FINANCIAL HIGHLIGHTS
-- Fully funded to production in H1 2015
-- Agreement to sell up to 13% in Kiliwani North Development
Licence accelerates debt repayment and opens up further
opportunities in Africa
-- Sale of Aminex USA, Inc. completed
OPERATIONAL HIGHLIGHTS
-- On schedule to be a new East African producer - first gas from Kiliwani North due 1H 2015
-- Infill seismic acquisition completed over Ntorya appraisal area connecting Ntorya and Likonde
-- Resource upgrade announced over key channel fairway
-- Focused on highly prospective deep water portion of Nyuni Area PSA
-- Board changes and strengthened technical team
Chief Executive Jay Bhattacherjee commented:
"I would like to thank shareholders and the Aminex team for
their continued support. Aminex remains an Africa-focused oil and
gas company with near term production, development and high impact
exploration. We set ourselves apart with an experienced, recognised
and well-invested management team. Aminex carries a strong asset
base with large resource potential and a route to monetisation in
early 2015. The Company is fully funded to execute its current work
programme, with strict cost measures in places, and our stated
strategy is being executed both on time and to budget. I look
forward to updating the market on Aminex's continued progress in
due course."
Glossary of initials used
MMSCFD Millions of standard cubic feet of gas per day
PSA Production Sharing Agreement
PSC Production Sharing Contract
GIIP Gas Initially In Place
Pmean Average (mean) probability of occurrence
BOE Barrels of oil equivalent
MCF Thousands of cubic feet of natural gas
TPDC Tanzanian Petroleum Development Corporation
I am pleased to report to the market today on the Company's
Interim Management Statement for the period 1 July 2014 to the date
of this statement. It has been a highly active period that has seen
Aminex make significant strides to its aim of moving from explorer
and developer into an East African producer.
RUVUMA PSA
In 2012, the Ntorya-1 discovery well in the Ruvuma PSA tested 20
MMSCFD together with 139 barrels of associated condensate. The
Company has now completed an infill seismic programme designed to
high-grade leads into drill-ready prospects across the Likonde and
Ntorya channel fairway. Management estimates for the channel
fairway alone have increased from 1.2 Tcf to 2.3 Tcf (GIIP Pmean),
as previously announced. The Company continues to re-interpret data
over its Namisange Prospect and its Sudi lead while priority is
being given to the Ntorya and Likonde areas which will be the
catalyst for a new drilling campaign.
KILIWANI NORTH GAS FIELD
The Kiliwani North-1 gas well has been completed and primed for
production. A Gas Sales Agreement ("GSA") with the Tanzania
Petroleum Development Corporation ("TPDC") is in final form and
pending sign-off from the board of TPDC. First Kiliwani North
commercial gas is expected to be delivered into a new 36" regional
pipeline system in early 2015 which will be Aminex's first
commercial production in Africa. The pipeline operator is
constructing the sales pipeline from Kiliwani North to the nearby
processing plant at its own cost. The Company will therefore sell
its production at the wellhead, which greatly simplifies commercial
and management issues. This will be a major turning point for
Aminex as it progresses from being an explorer and developer into
an East African producer.
NYUNI AREA PSA
After further detailed technical review, Aminex and its partners
will expand their exploration efforts towards the highly
prospective deep water portion of the Nyuni Area PSA acreage. The
drilling success rate targeting the prolific Tertiary reservoir
based on 3D seismic is over 90%. The geology in the deeper water,
eastern part of the Nyuni Area acreage, is analogous to the recent
major deep water discoveries in the vicinity. The proposed deep
water seismic programme will not be conducted until an appropriate
vessel is in the area, as the mobilisation costs for a single
acquisition programme of this scope would otherwise be prohibitive.
Aminex is unlikely to be in a position to drill an expensive deep
water well in the Nyuni Area in the foreseeable future without
introducing a larger company as a farm-in partner.
U.S.A.
Aminex has completed the sale of its wholly-owned subsidiary
Aminex USA, Inc. to Northcote Energy Ltd. This disposal is in line
with the Company's long-stated intention to exit the USA and work
on growing a production and development business in East Africa,
where two existing Company discoveries are reinforced by further
high impact exploration opportunities.
EGYPT
The operator of the West Esh el Mellaha-2 PSC ('WEEM-2') has
successfully negotiated an extension to the First Extension period
and a progress report will be issued as developments occur. Aminex
has been notified by the operator that the South Malak 2 well has
commenced drilling and that the Wadi Kofra 1 location is now being
prepared. As the Company has a 10% effective interest in this PSC,
free-carried through to first commercial production, it has no
operational control over the licence and receives information only
when the operator provides it.
BOARD CHANGES
During the period under review, the Company was pleased to
welcome Mr. Tom Mackay to the Board as a Non-Executive Director.
Long-serving Non-Executive Directors Mr. David Hooker and Mr. Derek
Tughan retire with the grateful thanks from the Board for past
services. Mr. Andrew Hay has accepted the role of Senior
Non-Executive Director.
STRATEGY, FINANCING AND OUTLOOK
Aminex has entered into a Heads of Agreement with Solo Oil plc
("Solo") for the acquisition by Solo of up to 20% of Aminex's 65%
interest in KNDL. Under the terms of the agreement, Solo will
acquire 6.5% of the overall licence for $3.5 million and has an
option to acquire a further 6.5% for $3.5 million. The transaction
remains subject to the approval of the Tanzanian authorities, which
is expected to be received shortly, and thereafter the formal
assignment of the interest. On completion of the full agreement,
Aminex would have a reduced interest of 52%. The proceeds of up to
$7.0 million will be used to repay early the majority of Aminex's
corporate loan.
Aminex's primary efforts remain centred on its Tanzanian assets
where additional gas supplies to drive the country's economic
growth are of national importance. Aminex works closely with the
Tanzanian authorities, particularly the TPDC with whom it enjoys an
excellent and cooperative relationship.
The Company's first priority is to bring gas from the Kiliwani
North Field to market early next year as the construction of the
major regional pipeline progresses according to plan. The Company's
second priority is to appraise the Ntorya-1 discovery within the
Ntorya appraisal licence and better understand it and its
neighbouring leads and prospects in the two exploration licences,
which the Company holds under the Ruvuma PSA. A developed gas field
in the Ruvuma PSA would find a ready market in Dar es Salaam via
TPDC's new regional pipeline and the fast-tracking of such a
development would certainly be encouraged and assisted by the
Tanzanian authorities. The Company's third priority is to appraise
with seismic a prospect identified in the deep-water portion of the
Nyuni Area PSA which the Board views as a compelling opportunity
for a high-impact discovery.
- Ends -
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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