OilVoice - Aminex Reports Significant Well Test Results in Galveston County, Texas

Aminex Reports Significant Well Test Results in Galveston County, Texas

Thursday, October 30, 2008

Sunny Ernst-2 well flows 6.14 million cubic feet gas and 342 barrels condensate per day from the first of three productive zones

Aminex PLC announces the results of the first phase in a testing programme at the Sunny Ernst-2 well (“SE-2”), Alta Loma, Galveston County, Texas.

The first phase of testing programme at SE-2 has materially exceeded expectations. The well is expected to transform Aminex’s existing US production and to make a material and immediate contribution to cashflow.

SE-2 encountered multiple hydrocarbon-bearing formations in four separate zones, all of which have been logged as potential reservoirs:

Zone 1 the Weiting Sand - 5 feet of reservoir
Zone 2 the “S Sand” - 60 feet of reservoir
Zone 3 the “Upper Andrau” - 30 feet of reservoir
Zone 4 the “Massive Sand” - 4 feet of reservoir

Progress on the testing programme:

• Zone 4, the Massive Sand, tested gas flow rates in excess of 1.7 million standard cubic feet per day (“mmscfd”) and approximately 100 barrels of condensate per day.
• Zone 3, the Upper Andrau, tested gas flow rates of 6.1 mmscfd and 342 barrels of condensate per day.
• Zone 2, the “S” Sand, is the largest formation and will be perforated and tested in the near future.
• Zone 1, the Weiting Sand, will not be tested at this time and will remain as “behind-pipe” reserves for future production

Gas is now being delivered to market from the Upper Andrau formation on an initially restricted choke at the rate of 4mmscfd. There is a ready market for gas in the area. Condensate sells at close to WTI oil prices.

The operator of the well is Coronado Energy E&P, a wholly-owned subsidiary of El Paso Corporation, and participants in SE-2 well are:
Aminex: 37.5%
El Paso Corporation: 25.0%
Activa Resources: 14.5%
McFuel Corporation: 12.5%
Ventum Energy: 5.0%
Other small interests: 5.5%

Commenting on the announcement Aminex chairman Brian Hall said:
“The first phase test results achieved from SE-2 represent by far the most successful drilling result we have achieved in the USA to date. Results from the potentially much larger “S” Sand will be reported when available. Given its favourable royalty rate and low operating costs, coupled with substantial behind pipe reserves to support future production, this well should transform our US producing operation.”