5th Feb 2007 07:01
Aminex PLC05 February 2007 5 FEBRUARY 2007 AMINEX PLC ("Aminex" or "the Company") FARMOUT OF INTEREST IN NYUNI LICENCE, TANZANIA PROGRESS REPORT ON EAST AFRICA ACTIVITIES Aminex PLC, the oil and gas company listed in London and Dublin, ("Aminex" orthe "Company") today announces that its wholly-owned Tanzanian subsidiary NdovuResources Ltd. ("Ndovu") has signed an agreement with Key Petroleum Ltd. ("Key")to farm out an interest in the Nyuni East Songo Songo licence ("Nyuni"),offshore Tanzania. Aminex is also providing an update on the status of all itsEast African projects. FARMOUT OF NYUNI INTEREST Key, an Australian company based in Perth, has agreed to farm into Nyuni for a20% working interest. In order to earn its 20% interest Key will: • contribute 30% towards the costs of two exploration wells on Nyuni, the first of which is due to be spudded in the second quarter of this year and the second of which will be drilled later in the year; • issue 2 million new, fully-paid shares in Key to Aminex or such number of shares which will be valued at the time of its forthcoming admission to the Full List of the Australian Stock Exchange at A$600,000, whichever number of shares is the greater; and • contribute 10% of all licence costs arising in addition to drilling with effect from 1 November 2006 to the date of this agreement, estimated to be $2.5 million which will include the current seismic programme. Further terms: • If the combined cost of the two proposed wells at Nyuni should exceed US$15.4 million, then Key will only be obliged to pay 20% of the excess cost over this amount. • The Agreement is conditional upon (1) admission of shares in Key to listing on the Australian Stock Exchange, anticipated in the near future, and (2) formal approval from the authorities in Tanzania. Key was formed in 2006 by Mr. Ted Ellyard and Mr. Ken Russell. Mr. Ellyard,Chairman, is best known for his work at Hardman where, during his time as itsManaging Director, the company grew to be a highly successful explorer inMauritania and elsewhere. Mr. Russell, Chief Executive, has worked in theinternational oil and gas industry for over thirty years and has held managementpositions in a number of companies. PROGRESS ON EAST AFRICA ACTIVITIES Aminex has a full programme of exploration activity in East Africa planned for2007 and beyond. Nyuni, Tanzania: Two new exploration wells are planned at Nyuni in 2007 and rigdiscussions are well-advanced. Subject to final agreement, the first well islikely to be spudded towards the end of the second quarter. Aminex and itspartners have now acquired extensive new seismic data over shallow reefs andislands, employing innovative methods not previously used in the East Africaregion, and are close to finalising the location for the first Nyuni well in thecurrent programme. Shareholders will be advised when a drilling contract hasbeen finalised. Existing partners in Nyuni are Aminex 84%, Bounty Oil 6% andEast Africa Exploration Ltd. 10%. Discussions with Pan-African Tanzania Ltd., asubsidiary of East Coast Energy Ltd., to participate in Nyuni are continuing. Ruvuma, Tanzania: The Ruvuma Production Sharing Agreement ("PSA") consists oftwo adjacent licences, Lindi and Mtwara, together covering over 12,000 sq kms,of which about 20% is offshore. The PSA was signed in October 2005 with acommitment to drill two wells in an initial four year period and to shoot 500kms of new seismic. The first phase of this seismic has now been shot. Inearly 2006 Ndovu farmed out 50% of the PSA to Hardman Resources Ltd. ("Hardman")which earns its share through acquiring further seismic, not yet completed. Inlate 2006 Hardman's shareholders accepted an offer for their company from TullowOil PLC ("Tullow"). This transaction has recently been finalised and Aminexwelcomes Tullow as its partner in Ruvuma going forward. A further seismiccontract is likely to be signed shortly and the additional seismic required isplanned for the second quarter of this year. Timing of first drilling at Ruvumahas not yet been finally determined pending completion of seismic. Aminexoperates this PSA. Manja, onshore Madagascar: The Manja PSA (Block 3108) covers 10,750 sq kms inthe south of Madagascar adjacent to the west coast. The PSA was signed in late2005 and the 2006 work programme, consisting of gravity and aeromagneticsurveys, surface evaluation and reprocessing of 2,000 kms of existing seismicdata acquired by previous licence holders, has now been accomplished and thefirst year work programme signed off by the Madagascar authorities. Inaddition, evaluation of old wells, one of which flowed 2.7 million cubic of gasper day under test in 1958, has been undertaken. The 2007 programme consists of500 kms of new seismic acquisition. Preliminary reconnaissance surveys for thisprogramme have now been completed, an environmental impact assessment is inprogress and negotiations ongoing with seismic contractors. The objective ofthe survey will be to define a drillable prospect with a view to first drillingin 2008. The Manja PSA is held by Amicoh Resources Ltd., a company owned 50-50by Aminex and Mocoh Ltd., a downstream oil company. Aminex operates this PSA. Blocks L17 & L18, near shore Kenya: An Aminex subsidiary participates in aTechnical Evaluation Agreement ("TEA") in Kenya with a 25% interest. Blocks L17and L18 were formerly part of larger blocks L9 and L10 and have recently beenredesignated. Together they cover 5,000 sq kms, partly onshore and partlyoffshore, close to the port city of Mombassa. Partners in the TEA are UpstreamPetroleum Services Ltd. and SomKen Ltd. The group acquired over 700 kms of new2D marine seismic in 2006 and at the same time carried out seabed core sampling.Negotiations for conversion of the TEA to a full PSA have been ongoing forsome time but the partners are confident that a PSA will be successfullyconcluded in the near future. Aminex jointly operates this TEA. Commenting on the above Aminex Chief Executive Brian Hall said: "The agreement with Key provides valuable support for our important 2007drilling programme at Nyuni and a partner with a very experienced team for ouroperations. We welcome Key's participation and the vote of confidence itprovides. Since Aminex's PSA's were signed in 2005 both the Ruvuma Basin (spanningTanzania and Mozambique) and Madagascar have become areas of intense industryinterest and we believe our strategy of acquiring good acreage at an early stagein the frontier area of the East African margin has been vindicated bysubsequent events." END Enquiries: Aminex PLC +44 (0) 20 7291 3100Brian Hall - Chief Executive Pelham Public Relations +44 (0) 20 7743 6679Archie Berens This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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