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Energy

Aminex awaits farm-out close and new drilling

The Tanzania-focused oil and gas firm is working to develop the Ntorya discovery

Aminex PLC (LON:AEX) told investors it continues to seek the completion of its farm-out deal in Tanzania which will unlock new funds and see operations advance to the drilling of the Chikumbi-1 well.

The company, in its results statement for 2018, also highlighted that its cost reduction programme is underway following a recent review of corporate overhead costs, and, it ended the period with US$1.86mln.

In February, the company raised a further US$2.4mln in a share placing.

WATCH: Aminex looks ahead to Chikumbi drilling and completion of Ruvuma farm-out

Aminex noted that it is actively seeking investment opportunities to diversify its portfolio.

In terms of the core Ruvuma asset, there were a number of operational highlights in 2018.

It sold a farm-out deal with The Zubair Corporation to accelerate the development of the Ntorya gas field.

Ntorya was the subject of a new competent persons report ascribed a significant increase in resources - 763bn cubic feet of contingent gas resources and 1.87 trillion cubic feet of gas initially in place, plus 936bn cubic feet of prospective resources.

A rig contractor has been secured for the planned Chikumbi-1 well, which will target the prospective resources.

Remedial work was meanwhile undertaken on the Kiliwani North-1 well to reinstate production from the field.

In today’s financial results the company has fully impaired its Nyuni exploration assets, contributing some US$43.47mln to the group’s net loss US$48.51mln loss.

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