Aminex PLC ('Aminex' or the 'Company'), an independent oil company listed on the main market of the London and Irish Stock Exchanges with exploration and development assets in the emerging hydrocarbon province of East Africa, today announces the sale of the Somerset Field in Texas.
The Company's Aminex USA, Inc. subsidiary has completed agreements to sell leases and other assets comprising the Somerset Field for a total consideration of $701,600. The sale was comprised of two separate transactions:
1. A portion of the field was sold for $326,600 to Sun Edison which will construct solar farms on the property.
2. The remainder of the field and related assets were sold to Cheap Oil Inc. for $375,000. Cheap Oil assumes responsibility for plugging and abandoning old wells and other facilities where required, estimated by Aminex to cost approximately $2 million. Cheap Oil Inc. will also take over liability for equipment leases.
Aminex purchased the Somerset Field assets in 1994 and the property consists of a large number of low-productivity 'stripper' wells. Due to the potential abandonment liabilities and a high operating cost per barrel, no reserves value has been attributed to Somerset in recent years.
Aminex CEO, Stuard Detmer, commented: "The divestment of the Somerset properties, while small in size, is an important first step in rationalising the Aminex portfolio and redirecting resources towards high impact investments in core geographies."
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