'Challenging' five months for Aminex

Aminex, the independent oil and gas company,is in the midst of a "complex and challenging period".

"2013 to date has been a complex and challenging period for Aminex and, while shareholders will be disappointed with the delay in farming out our Ruvuma interests and divesting the US assets, in recent weeks we have had a number of encouraging indicators on several fronts which lead me to believe that we can be optimistic for the company's future," executive chairman Brian Hall said.

The Dublin and London listed firm, which has interests in the coastal margin of East Africa, has scheduled production for its Kiliwani North gas field in Tanzania for late 2014, but according to an interim management statement released to the Irish Stock Exchange this morning, it is now “conservatively assuming” first production in early 2015. The gas field has been beset with delays due to bottlenecks in the existing system, but these will be overcome once a major new gas pipeline and treatment plant, financed by the Chinese Export Bank, are complete.

The exploration firm also has a production sharing agreement in Ruvuma, but, while an extensive farm-out process has been in progress since 2012, “satisfactory bids” have not yet been received. Discussions however are on-going, with more than 30 companies expressing an interest.

“Despite interest from a wide range of companies, it has become apparent that the market for relatively early stage farm-outs in frontier areas is less developed than anticipated, even allowing for encouraging discoveries in the same basin and the slowly improving economic climate,” the company said.

While the company remains committed to divesting itself of its US exploration, development and producing operations, the process is taking “a great deal longer than anticipated”.

Following the departure of chief executive Stuard Detmer in January, it is expected that his replacement will be announced in the coming months.