Aminex Climbs with Positive IMS

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Aminex Plc (LSE:AEX) shares closed up 4.2% on Wednesday following the release of their Interim Management Statement.

The AIM listed oil and gas company released this announcement pertaining to the period dating from 1 July until today. Among the highlights stated by the firm, their cash position as of 31 October was approximately £18 million, providing the company with enough capital to meet their commitments and expenses through 2012.

The statement gave reference to the new CEO, Stuard Detmer, who was appointed on 20 September 2011. Mr Detmer has worked in the oil business for over 20 years with firms such asMobil Oil Corporation and Sibir Energy Plc, which he helped sell to Gazprom in recent years. The new CEO took over the position from Brian Hall, who remains as Executive Chairman of the company.

Nyuni Area PSA

On 27 October, Aminex subsidiary Ndovu Resources Ltd signed a new Production Sharing Agreement with the Tanzanian Minister of Energy & Materials. This new agreement allows for a continuation of Aminex activity in the area following the recent expiration of the Nyuni-East Songo-Songo PSA. The Nyuni Area PSA is larger, covering a total of 1,690 km², including four additional blocks north of the previously covered area.

In September, Aminex completed a swap with partner Key Petroleum Ltd, giving up its 50% interest in the West Songo-Songo PSA for Key’s 5% interest in the new Nyuni Area PSA. Following this agreement, Aminex’s position in the new agreement is 70%, while RAK Gas has 25%, and Bounty Oil has 5%.

Nyuni-2 & Nyuni-1 Operational Difficulties

Drilling began on the Nyuni-2 well in June and by September, the well had been drilled to a depth of 3,450 metres. Despite the progress, a piece of debris created an impenetrable obstruction to the well, which eventually had to be abandoned. The failed well did not effect the integrity of the Nyuni prospect, which remains a prime exploration target.

Following the cancellation of the Nyuni-2 well, the rig was moved back to the Nyuni-1 well to re-enter and further evaluate gas sands identified back in 2004. The testing data was inconclusive and the well was plugged and abandoned after the last tests were completed.

Kiliwani North Development

The company announced that the Kiliwani North gas field is getting ever closer to commercialisation, with Aminex and partners being granted a 25 year lease in April. Production is anticipated to begin in early 2012.

Ruvuma PSA

In September of this year, the Ruvuma PSA was reorganised, giving Aminex a 56.25% interest and ownership rights, Tullow a 25% interest, and Solo an 18.75% interest.

Aminex plans to spud the Ntorya-1 exploration well in the Mtwara license, a part of the Ruvuma PSA. According to the statement, they will drill to a depth of 2,000 metres. The drilling platform has already been constructed and the firm is only waiting on final environmental consent.

Other Interests

In Aminex’s American operations, two proposed wells have been postponed until 2012 in a joint venture with El Paso E&P LP. The company also reported that the state of Louisianaapproved the conversion of an idle well to a salt water disposal, allowing the OM10-1 discovery well to realise its full potential.

The company reported that its Alta Loma Site in Texas is consistently delivering high rates of oil and gas, resulting in an increase in group production by the end of the year.

Aminex also announced that further exploration opportunities continue to progress in both Egypt and Korea.

The company was quoted in saying:

“With the signature of the new Nyuni Area PSA, the December spudding of the Ntorya exploration well under Aminex operatorship in the Ruvuma Basin and the Kiliwani North gas field moving towards commercialisation, Aminex is making significant progress in strengthening its position in the highly prospective Rufiji Delta and Ruvuma Basin regions of Tanzania.”

↑  Aminex IMS

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