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The Markets
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Today's Oil and Gas Update: Aminex and Volga Gas

Headlines

In Brief:

Aminex (LON:AEX – 2.10p) – Revenues Delivered

Volga Gas (LON:VGAS – 48p) – Production Update

In Brief

Aminex (LON:AEX – 2.10p) – Revenues Delivered: While today's news was mostly about the appraisal wells Ntorya-2 ("NT2") and NT3, the snippet that caught our eye was the confirmation that the cash flows from Kiliwani North are now reaching the Company. While there has been much time and pain to get to this point, and no small dilution to shareholders, this is a milestone and one that should be rightly welcomed by the Company's owners. We believe that as long as the cash flow is managed in an appropriate manner, that the Company has a great opportunity to become a regional consolidator. The next 6 - 12 months will now be key.

Volga Gas (LON:VGAS – 48p) – Production Update: Today's production update highlights the impact of the commissioning of the desulphurisation facility at the Vostochny Makarovskoye (“VM”) gas plant, although at its Karpenskiy field, the Company's deliverability was significantly up. We continue to believe that the way in which Volga Gas is arranged corporately and operates, both at field level and corporately, significantly derisks investing in Russia for the Company's owners.

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