30th Apr 2019 12:46
LONDON (Alliance News) - Aminex PLC on Tuesday said its loss widened sharply in 2018 following a fall in production by its Tanzanian assets.
The stock was down 9.6% in midday trade at 1.02 pence a share.
The oil and gas company reported a pretax loss of USD48.5 million compared to USD2.3 million reported a year ago, as revenue dropped to USD617,000 from USD6.6 million.
Gas revenue of USD50,000 was reported for 2018 versus USD6.0 million a year prior, following a decline in production rates from the Kiliwani North-1 well in Tanzania due to a loss of wellhead pressure, which started in the second half of 2017. Aminex said it has worked on the well and expects to bring it back into production, but didn't provide a time frame for this.
Revenue of GBP570,000 arose from oilfield services, comprising the provision of technical and administrative services to joint venture operations. This also was lower than USD680,000 generated in 2017.
"2018 was a year of both highs and lows. The company experienced highs in agreeing a farm-out of a 50% interest of our Ruvuma [production sharing agreement] to Zubair Corp, who are a well-capitalised group and have the intention to carry Aminex through to material levels of cashflow, without further recourse to Aminex capital," explained Chair John Bell.
"The company also experienced frustration with continuing delays, much of which was outside of our control, that affected our ability to conduct operations and the closing of the farm-out," added Bell.
The Ruvuma PSA includes the Ntorya field for which Aminex made an application for a development licence in 2017 to the Tanzanian government. Under the terms of the farm-out, Aminex will receive cash consideration of USD5 million in two tranches and a net USD35 million carry for its remaining 25% interest on the development programme through to production.
"We recognise the importance and expectation to diversify our portfolio and are actively seeking new development-led opportunities which could provide near-term revenue to the group. The Ruvuma farm-out provides us with the flexibility to look at such opportunities," said Chief Executive Jay Bhattacherjee.
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