Aminex Share News (AEX)

Africa and US focused oil and gas firm Aminex has suspended further work on the Nyuni-2 exploration well off the coast of Tanzania due to obstructions near the base of the well, the firm said. Repeated attempts to drill out the obstructions were unsuccessful so a decision was made to cement off the lower section of the well bore work around the obstruction. "Sidetracking operation has also proved to be highly problematic and earlier this week the mud motor and drill bit became irretrievably jammed in the well bore. Engineering advice now indicates that a further side track attempt would only have a limited chance of success. A decision has therefore now been taken to suspend the well," the group said in a statement. Aminex was keen to emphasise that although geologically complex, the Nyuni prospect remains a prime exploration target and preliminary indications of gases from Neocomian and shallower Cretaceous sands have been encountered, suggesting the same active petroleum system, which was encountered in Nyuni-1. The Nyuni-2 well bore remains available for re-entry at a later date, the firm added. Chief executive Stuard Detmer said: "Aminex has persevered with this well for longer than anticipated, but has now agreed with its partners that the high cost of continuing cannot be justified given the low probability of overcoming the technical difficulties in a timely and cost-efficient manner. "We will now review both the geological information gained and possible solutions to the operating conditions encountered without incurring further drilling costs at this stage." Once work is complete at Nyuni Island, the rig will be mobilised to the onshore Ruvuma Basin in southern Tanzania where Aminex expects to start drilling the Ntorya-1 well towards the end of this year.The share price fell 29.55% to 3.88p by 08:36.NR