Investing with Vis

I will be removing the Sexy charts above in a week or two, to replace them with new charts.

My first pick for 2006 is a favourite of mine. AMINEX
I have been following this company for the past 3-4 months, despite its 4 bagger status in 4 months, i still think its got alot more to go. If the North Korea Situation does not develop as Aminex shareholders would like i cant see AMINEX falling much from current levels given its operations in Tanzania, Madagascar and Egypt.

DPRK's knowledge of international oil market has been limited therefore they have signed a PSA agreement with AMINEX to provide assitance and skill sets needed in the oil market so DPRK dont get pissed on by the big hot shots. The agreement is a signing of a nine-year production-sharing agreement to explore and develop 66,000 square kilometers (25,000 square miles) of North Korean territory. The agreement covers areas in the Yellow Sea's West Korea Bay and in the Sea of Japan as well as onshore.

This PSA says AMINEX has first call on acreage, in other words they get to choose the best parts which they believe have the most oil! If they choose not to go ahead and develop certain areas [this will be inevitable given AMINEX's small size] they will get 10% carry and 2.5% royalty on any oil produced by a third party.

AMINEX to some degree is very much dependent on how the 6 party talks pan out, which are likely to resume in the next few weeks. The risk reward is great on this stock, it will be in for a bumpy ride, i would not be surprised to see ups and downs of 20%...but im prepared to disregard the 'noise' and keep it in the perfolio for the whole of 2006.

The website is well worth looking at www.aminex-plc.com

Heres a bloomberg link summing up the story nicely



And a bit more information

Another example. Aminex, formerly known as Eglinton Oil & Gas, raised new funds in June at 9p per share. By the end of 2005, the shares were almost three times that level. Aminex has a unique arrangement with the authorities in energy-starved North Korea which many oil majors would trade a Lear jet for.

It also has gas production in fields in Louisiana and Texas adjoining the Gulf of Mexico and acreage in Tanzania on the relatively undeveloped East coast of Africa.

Aminex is planning to spend $4m in 2006 on exploration wells in Tanzania and in shooting seismic off the coast of North Korea in an area not 200 kilometres from Chinese oilfields.

Seismic work has been delayed in North Korea because of ice and will resume with the spring thaw.




China, North Korea strike oil deal
Sunday 25 December 2005, 12:35 Makka Time, 9:35 GMT



also



ANALYSIS: North Korea dreams of oil-funded security