AEX Aminex Plc

 

TIDMAEX 
 
RNS Number : 7644T 
Aminex PLC 
04 October 2010 
 

 
                                  AMINEX PLC 
 
 
SHOATS CREEK DRILLING UPDATE 
 
 
Aminex PLC ("Aminex" or the "Company") is pleased to provide an update on its 
Shoats Creek exploration programme. 
 
Shareholders will recall that the Olympia Minerals 10-1 well ("OM10-1") was 
drilled to target depth in August.  On the basis of encouraging well logs, a 
decision was taken to test the Upper Wilcox sands. 
 
El Paso Exploration and Production LP and partners ("El Paso"), the operator of 
OM10-1, subsequently recommended that greater productivity could be achieved by 
fracture treatment of individual formations ('frac-treatment').  As each of five 
zones has had to be frac-treated separately and each zone then flow-tested prior 
to perforating and frac-treating the next zone up, this has become a relatively 
long process. 
 
Four of the five zones selected have now been frac-treated and the fifth is 
likely to be frac-treated during the next 7 days, always subject to equipment 
availability and unanticipated operational delays. 
 
Once the final stage of the frac-treatment programme is completed, a decision 
will be made on which zones will be initially produced and which (if any) will 
be left behind-pipe for future production. 
 
Optimised production will then commence and the details will be announced to 
shareholders. Until the test programme has been completed no further 
announcements will be made. 
 
Aminex chairman Brian Hall commented: "The Wilcox sands underlying Shoats Creek 
have for a long time been a significant component of our 2P reserves in the USA 
and we are very pleased that these are now being proved up with the drill bit. 
Further drilling in the Wilcox is likely." 
 
 
For further information: 
 
Aminex PLC                                        +44 (0) 20 7291 3100 
Brian Hall - Chairman 
 
Pelham Bell Pottinger                   +44 (0) 20 7861 3112 or +44 (0)7802 
442486 
Archie Berens 
 
 
BACKGROUND TO CURRENT WORK AT SHOATS CREEK 
 
·     In July 2010 Aminex entered into a unitisation agreement (the "Unit") with 
El Paso for exploration of deep Wilcox sands.  The Unit covers 960 acres, 
approximately half of which lie in Aminex's 1,500 acres lease area at Shoats 
Creek, Louisiana and half in El Paso's acreage directly to the west.  Under the 
agreement, Aminex and El Paso will jointly explore the Wilcox sands in the Unit 
on a 50-50 basis with each party paying its 50% share of the costs. 
 
·     The Unit covers prospects deeper than 10,000 feet and therefore excludes 
the Cockfield and Frio sands which are also present in Aminex's part of the 
Unit. El Paso is the designated operator of the Unit. 
 
·     The presence of oil-bearing Wilcox sands in Aminex's part of the unit was 
established through a well drilled by a previous operator in 1988 but this was 
never tested.  However, newly interpreted and mapped 3D seismic data enabled a 
promising drillable Wilcox structural prospect to be identified. 
 
·     With a defined prospect and a suitable and available rig close at hand, 
the Olympia Minerals 10-1 well ("OM10-1") was drilled to a total vertical depth 
of 12,240 feet (measured depth 12,400 feet), encountering and logging potential 
hydrocarbon bearing sands in both the Cockfield and Wilcox formations, as 
announced to shareholders on 19 August 2010. 
 
·     The logs of OM10-1 were extremely encouraging and a decision to test the 
Upper Wilcox sands was taken.  El Paso has extensive experience of drilling in 
Wilcox sands and, due to the laminated nature of these sands which was apparent 
from electric logs, recommended that greater productivity could be achieved by 
frac-treatment of the individual formations. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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