Aminex to Withdraw from Tanzania PSA

- Aminex to Withdraw from Tanzania PSA

Tuesday, September 13, 2011
Aminex plc

Aminex and Key Petroleum Ltd. ('Key') currently participate 50-50 in the West Songo-Songo Production Sharing Agreement ('PSA') in Tanzania, with Key as the operating partner. Progress has been slow to date and the work program is behind schedule, creating uncertainty about the future of the PSA. As a consequence, Aminex has agreed with Key that it will withdraw from the PSA, transferring its 50% interest to Key which will then hold 100%. In exchange, Key will relinquish its 5% interest in the new 'Nyuni Area PSA' in favor of Aminex. The West Songo-Songo transfer is being submitted to the Tanzanian authorities for formal approval but the practical aspects of the transfer will be implemented immediately.

The 'Nyuni Area PSA' will replace the existing 'Nyuni-East Songo-Songo PSA', operated by Aminex's wholly-owned subsidiary, Ndovu Resources Ltd., which is now time-expired and where work obligations have been fulfilled, with two gas discoveries recorded. The new Nyuni Area PSA has already been initialed by both Aminex and the Tanzanian authorities, as previously announced, and will be formally executed by the Minister of Energy and Minerals at an appropriate time. The Nyuni Area PSA will be materially larger than the earlier one and will comprise 4 additional blocks directly to the north, as well as the area covered by the existing Nyuni-East Songo-Songo PSA. Key will retain a 5% working interest in the Kiliwani North gas development license, which was carved out from the Nyuni PSA earlier this year. Interest holdings will now be as follows:

• Nyuni Area PSA (1,690 km², including 338km² making up the 4 additional blocks)
  • Ndovu Resources (Aminex) 70%
  • RAK Gas 25%
  • Bounty Oil 5%
• Kiliwani North Development License (85 km²)
  • Ndovu Resources (Aminex) 65%
  • RAK Gas 25%
  • Bounty Oil 5%
  • Key Petroleum 5%

Aminex considers that the new acreage included in the Nyuni Area PSA will provide greater scope for establishing a new play fairway on the continental shelf which could share similarities to some of the recent deep water drilling successes.

Aminex Chairman Brian Hall commented, "Although West Songo-Songo is potentially promising acreage, we believe that our strategy of increasing our interest and acreage in the Nyuni PSA area together with our recently announced increase in our percentage interest in the Ruvuma Basin will be more effective and valuable than our existing portfolio mix."

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Aminex Spuds Well Offshore Tanzania

- Aminex Spuds Well Offshore Tanzania

Friday, June 17, 2011
Aminex plc

Aminex announced the spudding of the Nyuni-2 well, offshore Tanzania. The well spudded shortly after 00:00 hours this morning, local time, June 17.

Nyuni-2 is being drilled from a surface location on the small Nyuni Island, approximately 30 kilometers off the mainland of Tanzania, to the south of the Rufiji River delta, using the Caroil-6 land rig. The well will target the same Neocomian sandstones which form the reservoirs in the nearby Songo-Songo gas field and in the Company's own Kiliwani North gas field reservoir. An additional target is an Aptian/Albian sandstone reservoir which was logged as gas-bearing in the Nyuni-1 well, which was drilled but not tested in 2004.

Nyuni-2 will be deviated to the south-east at an angle of 29 degrees from vertical to target a bottom-hole location approximately 1.200 meters away from the island. Total measured depth is likely to be 3,325 meters and total vertical depth 2,964 meters subsea. It is estimated that drilling to target depth will take 9-10 weeks.

Nyuni-2 will be the fourth exploration well drilled in the Nyuni area by Aminex as operator, and two of the previous wells discovered gas in commercial quantities.

Significant drilling events at Nyuni-2 will be reported to shareholders when appropriate.

Partners in the well are:

• Ndovu Resources (Aminex) 65% (operator)
• RAK Gas 25%
• Bounty Oil 5%
• Key Petroleum 5%

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Aminex Updates Ops at Ruvuma Basin

- Aminex Updates Ops at Ruvuma Basin

Tuesday, June 07, 2011
Aminex plc

Aminex announced plans for drilling a further exploration well in the Ruvuma Basin Production Sharing Agreement area of Tanzania. The well is designated Ntorya-1 and will be drilled in the Mtwara Block, in the southern part of the Ruvuma PSA.

Partners in the well are Tullow Oil (operator-50%), Aminex (37.5%) and Solo Oil (12.5%).

In 2010 the joint venture drilled the Likonde-1 well in the Lindi Block which forms the northern part of the Ruvuma PSA. Likonde-1 reached a total depth of 3,647 meters and intersected two sandstone intervals with a combined thickness of over 250 meters (820 feet), containing evidence of residual oil and gas. Likonde-1 was terminated due to high gas influx.

Ntorya-1 well will be drilled about 14 kilometers to the south of Likonde-1, to a planned total depth of 2020 meters, targeting the same high quality Lower Tertiary reservoir sands encountered in the Likonde-1 well. Seismic interpretation places the sands at Ntorya-1 structurally up-dip relative to Likonde-1. Aminex estimates that the well has a probability of success for the discovery of hydrocarbons of approximately 20%, with a mean recoverable resource potential of 100 million barrels oil equivalent.

The Tanzanian authorities have now formally approved the drilling of Nyorya-1 and a rig has been secured. Spud date is likely to be September-October this year.

Aminex chairman Brian Hall commented, "The Ruvuma basin is a significant frontier exploration area which has witnessed important discoveries offshore in the last two years, in neighboring Mozambique and most recently with BG's discovery in a deep water license directly adjoining the Ruvuma PSA. The Ruvuma PSA covers a large, mainly onshore area which has only been lightly explored to date and we welcome the approval of the Tanzanian authorities to the Ntorya-1 location which will enable an exciting drilling program to continue."

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Aminex Flows 8.1MMcf Per Day at Alta Loma

- Aminex Flows 8.1MMcf Per Day at Alta Loma

Friday, June 03, 2011
Aminex plc

Aminex provided a further update on progress at the Sunny Ernst-2 well ('SE-2') on its Alta Loma property, Galveston County, Texas.

Enhanced treatment facilities have now been successfully installed and other production facilities upgraded. Production is being increased gradually during pressure monitoring and is currently producing at 8.1 million cubic feet gas per day and 345 barrels condensate (1,695 Barrels oil equivalent) from the recently perforated 'S' sands formation, with no significant decline in pressure. Higher production rates should ultimately be achieved but the well is being prudently managed for the time being in compliance with Federal regulatory limits and current pipeline availability. Gas and condensate produced from SE-2 is sold to market at a premium respectively over posted gas prices and over the West Texas Intermediate marker price for crude oil in the USA.

Aminex USA, Inc. (a wholly-owned subsidiary of the Company) has a 37.5% interest in this well which is operated by El Paso E&P, LP. Several other parties share ownership of the remaining 37.5% of the property. Aminex's working interest share of production equates to approximately 636 barrels oil per day, of which 20% is condensate and 80% is gas.

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Aminex Recompletes Sunny Ernst-2

Aminex Recompletes Sunny Ernst-2

Thursday, May 05, 2011
Aminex PLC

Aminex PLC announced Thursday that the Sunny Ernst-2 well at its Alta Loma property, Galveston County, Texas, has now been successfully recompleted in the "S" Sands.

The Upper Andrau Sands, placed on production after a successful discovery in summer 2008, are now substantially depleted and have been plugged off. A new completion has been made higher up the well bore in the "S" Sands formation, where a 60 foot hydrocarbon-bearing interval was logged during the original exploration drilling. This interval has now been successfully tested and is on limited production of 3.5 million cubic feet gas and 260 barrels condensate per day, pending the installation of upgraded production equipment which is due to be operational this month. The flowing tubing pressure is constant at 8,700 pounds per square inch on a 5/64" choke.

With full production facilities in place, production is likely to increase materially from the current restricted level in the near future and the increased production levels will be announced when available.

Aminex USA, Inc., a wholly owned subsidiary of the Company, has a 37.5% interest in Sunny Ernst-2 which is operated by El Paso E&P, LP.

Aminex chairman Brian Hall commented: "The recompletion of Sunny Ernst-2 will provide a substantial boost to production with immediate revenue benefits and at a low capital cost when compared to new drilling. Unlocking value from the 'S' Sands, potentially more prolific than the Upper Andrau formation, has been an objective of the Company for some time, but commingling the 'S' Sands with the Upper Andrau Sands was not a technically viable option and so recompletion was delayed until the Upper Andrau was approaching the end of its economic life."

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Aminex Receives Extension for Nyuni PSA

Aminex Receives Extension for Nyuni PSA

Thursday, April 14, 2011
Aminex plc

Aminex has received a formal extension of 6 months to the Nyuni East Songo-Songo Productions Sharing Agreement (Nyuni PSA) from the Tanzanian Ministry of Energy and Minerals. This extension is to cover the likely eventuality that the Nyuni-2 well, due to be spudded in the next few weeks, will not be completed within the life of the existing Nyuni PSA which expires this year.

As announced on April 12, the Minister of Energy and Minerals has now signed a 25-year Development License for the Kiliwani North Gas Field. This license area has been carved out from the Nyuni PSA. Terms for a new and expanded PSA to replace the expiring Nyuni PSA have been negotiated and agreed and are expected to be formally concluded in due course.

Aminex chairman Brian Hall commented, "We are very grateful for the co-operation we have received from the Tanzanian authorities in facilitating completion of our current drilling program and we are looking forward to continuing activity in this interesting part of the East African coastal margin."

The Nyuni PSA is held as follows:

* Ndovu Resources Ltd. 65% (operator)
* RAK Gas Commission 25%
* Bounty Oil 5%
* Key Petroleum 5%

Aminex Inks Development License for Kiliwani North Gas Field

Aminex Inks Development License for Kiliwani North Gas Field

Tuesday, April 12, 2011
Aminex plc

Aminex announced that The Minister for Energy & Minerals of Tanzania, the Hon. William Ngeleja, has signed a Development License with the Company's Tanzanian subsidiary, Ndovu Resources Ltd., ('Ndovu') for the Kiliwani North Gas Field in Tanzania. This is a major step in bringing the Kiliwani North Field on to production.

The Development License represents an area carved out of the Nyuni East Songo-Songo Production Sharing Agreement ('Nyuni PSA') which includes the mapped area of the Kiliwani North gas field. The Kiliwani North-1 well flowed gas at a rate of 40 million cubic feet per day (equivalent to 6,700 barrels of oil per day) under full production test conditions. Ndovu manages the Nyuni PSA and the Kiliwani North gas field as operating partner for a four-company consortium.

East Africa has become the subject of high industry interest recently, following successful drilling by large companies operating in deep water, both in Tanzania and in neighboring northern Mozambique. The Kiliwani North Development License is the first new Development License granted in Tanzania as a consequence of exploration drilling carried out in recent times and is a significant milestone in the commercialization of Tanzanian gas.

Kiliwani North has been independently estimated to contain 45 billion cubic feet ('BCF') gas in place on a Pmean Contingent Resources basis, equivalent to 7.5 million barrels of oil. Gas from Kiliwani North will be available to assist in countering current energy shortages in Tanzania.

Another prospect which lies within the development area, known as Fanjove North, but which has yet to be drilled, has been independently estimated to contain in excess of 200 BCF gas in place, equivalent to approximately 30 million barrels of oil, on a Pmean Prospective Resources basis and, subject to the outcome of a planned transition zone seismic survey, may be drilled in due course.

The Kiliwani North wellhead is situated on the southern tip of Songo-Songo island off the coast of Tanzania and is less than 3 kilometers from the nearest access point to the process facilities (being upgraded) at the input end of the Songas common-user pipeline which delivers gas from the neighboring Songo-Songo field to the city of Dar es Salaam. Ndovu has already negotiated a memorandum of understanding for the future sale of gas to industrial users in the Dar es Salaam area and expects to be able to deliver first gas within 12 months.

Partners in the Development License are:

* Ndovu (Aminex) 65%
* RAK Gas Commission 25%
* Key Petroleum 5%
* Bounty Oil 5%

Aminex chairman Brian Hall commented, "We are very pleased to have been granted this Development license, which represents a major landmark in our Tanzanian operations. The Development License will also benefit Tanzania, paving the way for a further energy source in a market with high and urgent demand.

Kiliwani North is well situated, close to a major pipeline, and the Development License will now enable us to negotiate agreements to access processing and transportation facilities. The existing pipeline has limited capacity but we may expect development of new pipeline infrastructure as a consequence of recent deep water gas discoveries.

The new Development License is a significant step for Aminex in commercializing its Tanzanian operations. Within two months we expect to start new exploration drilling at nearby Nyuni Island, targeting a large gas prospect within the Nyuni PSA. Negotiations are being satisfactorily concluded with the Tanzanian authorities for a new, enlarged Nyuni PSA which will replace the existing Nyuni PSA upon its expiry this year. This will be the first-ever renewal of an expired PSA in Tanzania. In the event that the Nyuni-2 well has not been concluded by the expiry of the current PSA, the Tanzanian authorities have indicated that they will provide an extension to the existing PSA to enable the Nyuni-2 well to be completed.

Shareholders will be kept informed on material events at Nyuni."