Aminex PLC (AIM:AEX) Company Shareholder Q&A

 

Aminex is a producing, Africa-focused oil and gas company, listed on the London Stock Exchange and primary-listed on the Irish Stock Exchange.

 

What is the status of drilling CH-1?

The Company is committed to drilling CH-1 as part of the greater Ntorya Development area and is working with the Tanzanian Government and all JV partners to drill as soon as possible. The Company received numerous bids for its drilling tender and has shortlisted two companies with which it is negotiating.

Can you confirm that the deeper target at CH-1 is oil or condensate?

The deeper Jurassic target is exploratory and does have potential to contain liquids, however the Company’s basin model assumes it is gas.

What is the current status of Kiliwani?

Equipment is being brought into country at present in order to remediate the well as planned and the Company will update shareholders in due course on the work over. It is in the interest of all parties to increase Kiliwani production as quickly as possible.

Considering the Company’s forward work programme, are there any operational obstacles to progress?

No. We continue to work with the Tanzanian Government and all JV partners to develop the field as quickly as possible.

Why has Kiliwani remediation changed strategy from Compression to re-working?

We have identified various remedial actions to enhance production and are currently implementing these. Compression, as part of an overall remediation programme, remains an option but the Company is looking at cheaper alternatives to increase production and potentially reserves.

When do you expect Kiliwani to be producing again?

It is in the best interest of all parties (including the Government) to maximise production as quickly as possible.

What impact has the lack of cash flow from Kiliwani had on the Company’s strategy?

The lack of cash flow has not impacted the overall strategy but obviously we are disappointed in Kiliwani production and are looking to remediate as quickly as possible.

Why did it take so long to organise a potential farm-out deal?
It was essential to only agree a farm out deal which we believe to be in the best interests of shareholders.

Did you go to any other parties for a potential farm-out deal?
We considered all opportunities for funding and believe we found the best one available to us as it offers a clear line of sight on potential revenues without recourse to further funding.

Why didn’t you look to raise funds instead of doing a farm out?
The Board felt that the key to unlocking the ultimate value from Ruvuma was to find a route that would accelerate development and production while not having a constant stop/start drill/finance scenario. The Company is farming out to a well-capitalised group which is interested in accelerating near-term production.

What happens if CH-1 is dry, both operationally and for the farm out?
Operationally, Ntorya 1 and 2 both proved gas exists in the field. If CH-1 is dry, we will need to update our models and consider the best way to move forward, which is expected to include 3D seismic acquisition. It is the strategy of all JV partners to develop the overall field as quickly as possible.

Full Q&A List Can Be Found Here 

If you would like to see more questions added, please email aminex@camarco.co.uk.

 


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