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Aminex confirms Ruvuma appraisal drilling will begin this year

Last updated: 09:37 15 Sep 2016 BST, First published: 08:32 15 Sep 2016 BST

two men working on an onshore oil rig
Kiliwani North produced its first gas in April and received its first revenues in August

Aminex plc’s (LON:AEX) recent fundraising will allow it to get underway with appraisal drilling at its Ruvuma licence in Tanzania this year.

It expects to spud the Ntorya-2 well at Ruvuma in the final quarter of 2016, with Ntorya-3 being drilled at some point in the first half of next year.

The company raised £18.3mln last month which will help fund the drill programme at its 75%-owned licence.

“The successful capital raise [in August] will enable appraisal drilling at Ruvuma to proceed rapidly…with a view to commercialising the Ruvuma area at the earliest possible opportunity,” Aminex said.

The Ntorya-1 discovery flowed gas at 20 million cubic feet per day (MMFD) with 139 barrels of associated condensate back in 2012.

In its half year report, Aminex told investors that it was looking to the future with “increased confidence” after enjoying a transformational first half.

"The period saw the transition of the company from developer to producer in East Africa and moves us into a position of cash generation and towards a period of sustainable growth,” said chief executive Jay Bhattacherjee.

“Kiliwani North not only ensures a consistent revenue stream that strengthens the balance sheet but also means we can now focus on our exciting drilling programme in the Ruvuma Basin.”

Aminex produced its first gas on African soil at Kiliwani – which it owns a 54.575% stake in – in April and received its first revenues for the gas last month.

For the six months to June, revenue from continuing operations rose to US$0.26mln (1H 2015: US$0.17mln), while net loss also increased to US$2.45mln from US$0.61mln in the first half of last year.

Shares were down 1% to 1.84p.

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