4th Aug 2005 07:00
Aminex PLC04 August 2005 AMINEX PLC ("the Company") Signing of Production Sharing Agreement in North Korea Aminex PLC today announces that The Company and its wholly-owned subsidiaryKorex Ltd. (together "Aminex") have signed a formal Production Sharing Agreement("PSA") with the authorities in the Democratic Peoples Republic of Korea ("DPRK") covering the West Sea offshore basin, a part of the East Sea offshore basin,the onshore Anju basin, the onshore Jaeryong basin and the onshore Pyongyangbasin. The total area of the PSA is approximately 66,000 square kilometres andincludes the greater part of the country's onshore and offshore territoryconsidered prospective for oil and gas. The term of the PSA is nine years divided into three periods of three yearseach. The structure which has been negotiated is intended to provide a fairreturn to both the host government and to the contractor, generally in line witha well-established international format. The work obligation in the firstperiod consists of new seismic acquisition and one new exploration well. Aminex announced an exclusive twenty-year Petroleum Agreement with the DPRK inSeptember 2004 under which it undertook to carry out certain work and providetechnical assistance aimed at advancing petroleum exploration in the country.This is now well-advanced and Aminex, together with Korean specialists, has maderapid progress during 2004/5 in extensively analysing existing technical data. In exchange for carrying out this work, Aminex received (1) rights to a royaltyon hydrocarbons to be produced from any new drilling in the country by thirdparties (2) entitlement to a carried interest in any new wells drilled by otherincoming companies and (3) prior rights to apply for specific licences andexplore in its own name anywhere in the contract area. By signing the PSA Aminex has now exercised these prior rights over most of thecontract area and will now commence a full exploration programme, includingconducting new seismic surveys and exploration drilling. The Aminex PSA, which is made under Swiss law, is far more comprehensive thanany other exploration agreement previously signed in DPRK and is an importantstep for Aminex and for the exciting oil and gas potential of the country.Intermittent exploration has taken place over a thirty-year period and oil hasalready been discovered in the West Sea but never exploited due to lack ofresources. The West Sea basin is adjacent to and thought to be an analogue ofBohai Bay, China's largest indigenous source of oil and gas and the scene ofrecent major discoveries. The strategic area covered by the PSA is very large and offers the potential forhigh-impact petroleum exploration. With the PSA in place Aminex will commencenew seismic surveys shortly. Brian Hall, Chief Executive of Aminex, commented "The agreement is the culmination of our work since we signed a PetroleumAgreement last year for cooperation with the DPRK. This extensive PSA of 66,000square kilometres includes several distinct basins and presents a rareopportunity for an independent company to gain exclusive access to a potentiallyimportant new petroleum province. The proceeds of a recent successful shareplacing and open offer to existing shareholders will be partly used in theinitial work envisaged by the PSA". 4th August 2005 Enquiries: Aminex plc Brian Hall 020 7240 1600 College Hill Jim Joseph/Ben Brewerton 020 7457 2020 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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