Aminex Regulatory News (AEX)

5 Mar 2007 07:04

Aminex PLC05 March 2007 5 MARCH 2007 AMINEX PLC ("Aminex" or "the Company") US ACTIVITY UPDATE Aminex PLC, the oil and gas company listed in London and Dublin, offers thefollowing update on its US activities: An independent report has now been finalised by Offshore Production ConsultantsLtd. ("OPC") on oil and gas properties held by the Company's wholly-ownedsubsidiary Aminex USA, Inc. OPC is a recognised oil and gas reservesengineering firm based in London and Houston. The report is the first fullre-evaluation of Aminex's US properties to be undertaken for three years and wascommissioned by Aminex following participation in joint venture drilling atSouth Weslaco, Texas, engineering and enhancement work at the Shoats Creekfield, Louisiana, and geological work in preparation for further drilling atAlta Loma, Texas. The re-evaluation reflects the effects of new drillingactivity and a strong overall improvement in commodity prices. The OPC report identifies total reserves of 5,438,000 barrels of oil equivalent,of which 871,300 are categorised as "proved" and 4,566,300 as "probable". No"possible" category has been included. In comparison, the total barrels of oilequivalent at end 2003 was 2.6 million. Using a discount factor of 10% and commodity prices going forward from 2010 notexceeding $61.12/barrel for crude oil and $7.53/mcf for natural gas, thecombined value of all the US properties for Proved and Probable (2P case) is$84,516,500. New drilling is planned at Alta Loma and South Weslaco, Texas, in 2007 while atShoats Creek, Louisiana, Aminex will be entitled to receive new 3D seismic datafree of charge from Forest Oil in return for permitting a 3D seismic survey tobe carried out over its property. Given the difficulty of the terrain at ShoatsCreek, an area of swamp and deep forestation, and the high cost of 3D seismicunder such conditions, the new data will be a valuable tool for Aminex in itsplans for further drilling at Shoats Creek. The new 3D data is likely to beavailable mid-2007. The GU#37 well, South Weslaco, Texas, drilled last year, encountered multiplegas-bearing sands in the Lower Frio formation but was specifically aiming for adeeper Frio target than previously drilled. Efforts to produce from this deepertarget have so far not been successful. If the deeper zone cannot ultimately beproduced, plans are in place to plug it off and complete the well for productionin a shallower zone. Aminex USA Inc. has a 12.5% working interest in GU#37 andpartners are: Apache Corporation (50%), Stalker Energy LP (24.5%) (operator),Activa Resources LLC (12.5%) and Kaler Energy Corp (0.5%). Aminex USA Inc.holds a 25% working interest in the other wells drilled at South Weslaco duringthe current programme which are currently producing. Commenting on the US operations, Aminex Chief Executive Brian Hall said: "We are very pleased to note the upgrading of our 2P reserves in the USA asreported by OPC's engineers in their new study. The US assets strongly underpin our international portfolio, which is focused on the upside potential of theEast African margin. Most of our efforts and resources are now directed towardsprogressing the East African exploration programme to the next stage in a regionwhich is attracting an increasing level of industry attention." 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 Exchange