Aminex, the oil and gas company listed on the London and Irish Stock Exchanges, announces its results for the half year ended 30 June 2007.
Highlights
• Gross revenues $2.9m (2006 $2.6m) and net loss $1.6m (2006 $1.63m)
• Rights Issue and institutional placing successfully completed
• Drilling due to commence in Tanzania in October and in Egypt in November
• Share of costs of Nyuni wells farmed out to third parties
• Onshore seismic in progress at Ruvuma (Tanzania) and in Madagascar
• South Weslaco GU#37 gas well in Texas now on production from a deep zone
• Further development drilling at South Weslaco in near future
• Exploration drilling to begin in Texas at Alta Loma in early 2008
• Negotiations for a licence in Kenya at an advanced stage
Brian Hall, Aminex’s Chairman, commented:
“The first half principally involved preparation for our active exploration programme in Tanzania, Madagascar and Egypt during the rest of 2007 and beyond. We raised new capital through a placing and rights issue in the summer and we spread our drilling risk through new farm-out arrangements in the Nyuni licence. Operationally we have made good progress and the coming months will be of great significance in the Company’s development.”
Overview
In the period under review, Aminex successfully completed an institutional placing followed by a rights issue completed after the end of the period which together raised $29 million before expenses, signed contracts for drilling two back-to-back wells in Tanzania and signed contracts for acquiring new onshore seismic data in operationally challenging areas of both Tanzania and Madagascar. Also during the period two farm-outs of the Nyuni licence in Tanzania were achieved.
Since the end of the period, a gas well at South Weslaco, Texas has, after several attempts, successfully been put on production, proving up a deeper and prolific gas zone in this gas field which has been producing for some time from shallower horizons.
The commencement of drilling in Tanzania has been delayed for several months because of mechanical problems with the rig experienced by the current operator. These problems have required some major and complex upgrading in situ. Remedial work has been beyond Aminex’s control and, with no alternative rigs operating in the region, we have had no choice but to wait. We now anticipate delivery of the rig to our consortium shortly. In Egypt we expect to spud the first of three wells on the West esh el Mellahah concession in November.
