Aminex Regulatory News (AEX)

24 Sep 2007 07:02

Aminex PLC24 September 2007 24 September 2007 Aminex PLC ("Aminex") US Drilling Update Aminex PLC, the oil and gas company listed in London and Dublin, announces thesuccessful testing, fracturing and completion of GU #37, its third well in theSouth Weslaco Field, Hidalgo County, Texas. The well tested gas at over 2.5million cubic feet per day ("mmcfd") on a 9/64" choke and has been placed oninitial production with a temporary restricted choke at approximately 1 mmcfd. GU #37 was drilled to a depth of 11,000' in October 2006 and identified multiplesands in the Frio formation. Aminex already produces gas in two neighbouringwells from a shallower Frio sand but the objective of GU#37 was to establishcommercial production from a deep zone in the Frio sand. Over a long period oftime strenuous efforts have been made to stimulate this deeper zone, thealternative being to abandon the Lower Frio formation and complete an intervalhigher up the well bore which would have eliminated the possibility of everproducing from the Lower Frio interval. This month the joint venture decided torisk carrying out a heavy fracture of the deeper formation which has provedsuccessful, resulting in a flow rate of over 2.5 mmcfd and establishing thecommercial potential of the deeper zone. Two other previously drilled wells, GU#35 and GU#36, have been on production forsome time and Aminex and partners have now proved up gas reserves in excess of20 billion cubic feet in this field. The incremental production from GU#37 willhave a significant positive impact on future cash flow with immediate effect.Drilling of a fourth well is planned towards the end of this year with furtherdevelopment drilling in 2008. Following a reorganisation of joint venture interests Aminex has now increasedits interest in this well from 12.5% to 25%. The production facilities areoperated by Apache Corporation. Aminex Chairman Brian Hall commented: "The successful frac of a deep zone in GU#37 greatly enhances the potential ofour South Weslaco producing property and points the way to further drilling. Itis the first successful well result since the closing of our recent Rights Issueand institutional placing." 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 Exchange