Aminex Regulatory News (AEX)

16 Feb 2006 07:01

Aminex PLC16 February 2006 16 FEBRUARY 2006 AMINEX PLC UPDATE ON US ACTIVITIES AT SOUTH WESLACO, HIDALGO COUNTY, TEXAS AND SHOATSCREEK, CALCASIEU PARISH, LOUISIANA Aminex PLC ("Aminex"), the oil and gas company listed in London and Dublin,today announces an update on its US activities. SOUTH WESLACO At South Weslaco, Hidalgo County, Texas Aminex participated in the drilling oftwo wells during 2005 as part of an ongoing multi-well development drillingprogramme. The GU-35 and the GU-36 were both drilled to a total depth of 9,000feet (2,743 metres). In each case logs encountered commercial quantities of gasin multiple formations. A rig was mobilised in December for completion of bothwells after a long waiting period which was a direct result of the currentshortage of mobile equipment. In mid-December both wells were put on extendedproduction test and, following a period of consistent flow rates of a combined3.1 million cubic feet per day with negligible depletion, are now on permanentproduction from the lower sands. There is considerable scope for producing "behind pipe" reserves in these wellbores from additional zones in the future. Aminex's wholly-owned subsidiaryAminex USA, Inc. has a 25% working interest in these wells and the operator isKayler Energy. The next well in the programme is designed to test deeperformations and will be spudded as soon as a drilling rig comes available. SHOATS CREEK Aminex has recently commenced a rehabilitation programme on the Shoats CreekField, Calcasieu Parish, Louisiana. In the past, difficult operating conditionsand competing projects made further investment in this field sub-economic but arecent engineering review and new economic modelling indicate the potential forsignificant untapped reserves and produce a strong business case for earlyredevelopment. The existing well bores are completed in the Cockfield Sands atdepths of between 8,000 ft and 9,500 ft. (2,438 metres and 2,896 metres). The Cain-1 well at Shoats Creek has already been re-equipped and recompleted andis producing at an average rate of 35 barrels per day. New oil tanks andfacilities are currently being installed at the field, old flow lines andredundant infield equipment are being removed and a second workover is inprogress. Aminex Chief Executive Brian Hall commented "The drilling of the South Weslacowells and the upgrading of the Shoats Creek wells and facilities are part of anongoing programme to bring new production onstream in the USA. Aminex is also continuing to make good progress with its exploration projects inAfrica and the Far East and will provide further information at the appropriatetime." Further info: Brian Hall Chief Executive, Aminex +44 (0) 20 7240 1600Archie Berens Pelham Public Relations +44 (0) 20 7743 6679 or +44 (0)7802 442486 This information is provided by RNS The company news service from the London Stock Exchange