Aminex raises £1.67m through new share placing

Dublin-listed oil and gas firm Aminex has raised £1.67 million (€2.34m) through the issue of 88,000,000 new shares at a price of 1.9 pence per share.

The proceeds are to be used primarily to fund further work on the Ntorya-2 appraisal well and the Ntorya-1 side-track well, both of which are in Tanzania.

"We are delighted with the support we have received for this placing, which attests to Aminex having an attractive blend of near-term production, medium term appraisal and development drilling and longer term exploration opportunities in Tanzania," said Aminex chief executive Jay Bhattacherjee.

Aminex also said during the period to the end of January next it expects to complete a refinancing of its corporate loan and to commence production at the Kiliwani North field.

The group announced earlier this month it had secured a six-month extension for the repayment of its $7.6 million corporate loan facility to allow it to complete ongoing repayment and refinancing discussions.

It added that the option granted to its partner Solo Oil to acquire an additional 6.5 per cent interest in the Kiliwani North Development Licence in Tanzania remains in force with any proceeds from a sale to be used to reduce loans and assist the development of its Ruvuma assets.

Aminex is currently in negotiations with the Tanzanian authorities over payment protection clauses and guarantees within the Kiliwani North agreement. The final commissioning of the regional pipeline and processing plant on Songo-Songo Island should enable first production from Kiliwani to commence later this year, but Aminex stressed there can be no certainty as to when the agreement will be finalised.