Aminex PLC (LON:AEX) boasted of its ‘encouragement’ as the Tanzania-focused firm anticipates further progress for its gas development projects.
A week ago the company told investors that it had seen positive movements in Tanzania with the government actively resolving several long-standing issues with other operators in the country.
It bodes well for Aminex’s Ruvuma project and provides confidence to the company and its partners ARA who are now prepared to further advance pre-drilling operations for the planned Chikumbi-1 well.
READ: Aminex and ARA to move ahead with pre-drilling work
Such sentiments were affirmed on Monday, in its half yearly results, as chief executive Tom Mackay said: "We are encouraged that the delays the company has experienced over the past eighteen months in being able to pursue our operations programme in Tanzania appear to be finally coming to an end and there is now firm evidence of a gradual unlocking of the approvals processes in country.
“Having successfully pared back our administrative expense, through the year to date, we have been able to advance a modest technical and operational planning work programme on both our KNDL and Ruvuma permits in what has been both a difficult and transitional period for your Company.
“We continue to see significant potential in our assets in Tanzania and look forward to being in a position to deliver value for shareholders, from a low-cost base, which we have worked tirelessly to achieve this year".
In terms of financial results, Aminex revealed that it generated some US$140,000 of revenue from continuing operations, all coming from the provision of technical and administrative services to its joint ventures – as there was no production revenue from the Kiliwani North gas well during the period.
Whilst the company intends to remediate operations at Kiliwani North this programme, subject to regulatory approval.
The company incurred some US$1.78mln of admin expenses, and, it reported a US$2.2mln loss for the first half of the year. And, it made a US$2.19mln loss before tax.
Aminex raised US$2.18mln during the six months via equity, and, more recently inked an agreement with partner ARA Petroleum to allow US$3mln to be paid via instalments pending completion of the agreed farm-out deal for Ruvuma.
The company ended June with US$2.02mln of cash and equivalents.