Aminex Regulatory News (AEX)

19 May 2009 07:00



Aminex PLC

INTERIM MANAGEMENT STATEMENT

First Quarter 2009

Issued 19 May 2009

Aminex PLC ("Aminex"), the oil and gas company listed on the London and Irish Stock Exchanges, today issues its Interim Management Statement ("IMS") for the period from 1 January 2009 to the date of this statement in accordance with the EU's Transparency Directive which requires certain listed companies to provide periodic updates to the capital markets in addition to their existing reporting requirements.

USA

ALTA LOMA, GALVESTON COUNTY, TEXAS

Sunny Ernst-1:  Workover under consideration

Sunny Ernst-2: Producing satisfactorily from the Upper Andrau formation with preparations in progress for dual-completion in the "S" sands. Dual completion poses a potential risk to the existing Upper Andrau producing zone and is not likely to be attempted until there has been a measurable decline in production from the Upper Andrau.

Sunny Ernst-3:  Provisional development well currently planned for the first quarter of 2010.

Pipeline restrictions have now been lifted and all gas produced can now be sold to market through the existing pipeline system.

This property is operated by a unit of El Paso Corporation and Aminex has a 37.5% working interest.

SHOATS CREEK, CALCASIEU PARISH, LOUISIANA

Interpretation of 3D data received in the second half of 2008 has now been completed and integrated with existing well data, the results showing considerable potential in the deep Wilcox formation which has not previously been produced in these leases as well as firming up the potential of the shallower formations. Armed with the new interpretation, Aminex is actively seeking a larger company with strong local operating capability to farm into the development of this significant but complex field.

Aminex is operator with a 100% working interest.

SOUTH WESLACO. HIDALGO COUNTY, TEXAS

SWGU-39 was successfully drilled and logged during the period under review. It has not yet been tested and placed on production. The property produces around 3 million cubic feet/day.

Aminex has a 25% working interest and the operator is Kaler.

SOMERSET FIELD, BEXAR COUNTY, TEXAS.

Somerset has a high operating cost per barrel and its oil is sold at a discount to the WTI marker price. Under a lower price regime it therefore requires careful management.  The recovery in oil prices from the lows of January-February 2009 is very beneficial for Somerset production.

Aminex is operator with a 100% working interest.

EAST AFRICA

Nyuni Licence, offshore Tanzania:

An Appraisal Location has been agreed with the Tanzanian authorities and a contract for new seismic survey has now been signed with BGP of China for acquiring further data on and around Songo-Songo Island for better definition of the Kiliwani North discovery which tested gas at 40 million cubic feet/day in June 2008. This survey is due to be completed within three months. Discussions for terms of the commercialisation of Kiliwani North gas are taking place at present in Tanzania and further exploration work is at the planning stage for the other prospects identified in the Nyuni licence area. The complexities and costs of early test production are such that it is probable that the Kiliwani North discovery will aim straight for full commercial development.

An Aminex subsidiary operates this licence with a 40% interest.

Ruvuma Licences, southern Tanzania:

The first well to be drilled on the Ruvuma licences, Mikindani-1, is likely to be spudded late in the third quarter/early in the fourth quarter of 2009. Site preparations are well-advanced although no rig has yet been contracted. Mikindani-1 is primarily an oil prospect rather than gas. Aminex is actively seeking a farm-in partner to defray its share of drilling costs on Mikindani-1.

The Ruvuma River is the border between Tanzania and Mozambique to the south. On the Mozambique side all prospective acreage is licensed and there are preparations in hand for several separate drilling campaigns. The Aminex-Tullow joint venture holds the principal onshore acreage on the Tanzanian side of the river.

Aminex has a 50% interest in these licences which are operated by Tullow Oil.

West Songo-Songo, Tanzania:

Seismic and exploration drilling is planned over the next two years.

Aminex has a 50% interest in this licence which is operated by Key Petroleum.

L-17 & L-18, nearshore Kenya:

Further seismic is planned over these licences in 2009.

Aminex has a 25% interest and is the operator.

EGYPT

West esh el Mellahah Block 2 ("WEEM-2"), onshore Gulf of Suez:

One or more further exploration wells will be drilled in 2009. Aminex has a 10% beneficial interest in WEEM-2 and its share of costs is carried by other partners through to first commercial production.

WEEM-2 is operated by Aminex Petroleum Egypt Ltd., in which Aminex is a shareholder.

NORTH KOREA

A planned visit to the United Kingdom by a high level Korean trade delegation during the period was cancelled through the intervention of the UK's Foreign and Commonwealth Office following missile tests by North Korea. This was a lost opportunity to restart stalled discussions on Aminex's project in the challenging political environment of North Korea

SERVICE COMPANY 

The AMOSSCO Group has been trading in line with expectations during the period under review

FINANCIAL

Aminex issued its interim results statement for the calendar year 2008 on 31 March 2009. Trading during the first quarter of 2009 has been approximately in line with expectations. Commodity prices have improved since the early part of the year and production is at higher levels than in the comparative period for 2008. Aminex accounts in US Dollars and a weaker Pound Sterling has the effect of reducing its cost base against its dollar revenues.

OUTLOOK

In the United States early activity is likely at Shoats Creek, South Weslaco and Alta Loma. US properties are being carefully managed for maximum revenues while costs are tightly controlled. Aminex is constantly on the look out for good-value US acquisitions which can be added to its long-term portfolio at a time of weaker commodity prices. In East Africa the results of the new seismic survey over Kiliwani North should provide a clearer picture of the discovery within the next few months and enable planning of a development programme. We are very excited by the upcoming Mikindani-1 well at Ruvuma which is a great opportunity for Aminex to participate in the first new well for many years to be drilled in a prospective basin which has recently been attracting strong industry interest. 

For Aminex PLC,

Brian Hall Chairman

Simon Butterfield Finance Director

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