OIL AND gas firm Aminex says it is well-funded for an active drilling programme this year and is on track to start pumping gas in Tanzania by the first quarter of 2012.
Aminex raised funds of about £26 million (€29.5 million) during the first quarter of the year through a combination of an institutional placing and an offer of new shares to existing shareholders.
As a result it was “securely funded” to implement a significant exploration and development programme, it said yesterday.
In a trading update, Aminex said its Nyuni-2 exploration well in Tanzania was targeting a “potentially large natural gas prospect”, while the second well at the Tullow Oil-operated Ruvama Basin is due to be drilled in the second half of the year.
A senior company executive later said gas should be pumped by early next year. Tanzania, east Africa’s second-largest economy, is heavily reliant on hydroelectric power. Power cuts are common, and the government hopes its natural gas deposits will ease the frequent blackouts that are slowing economic growth.
Michael Rego, Aminex’s exploration director, said in an interview that engineering studies and commercial talks for the sale of the gas were under way.
Aminex said progress was now being made at the Kiliwani North gas field, also in Tanzania, following regulatory delays. Aminex was granted a development licence for this gas field in April.
Davy stockbrokers said Aminex’s African wells should attract substantial investor interest this year and issued an “outperform” rating for the stock.
In the US, further drilling is planned at Shoats Creek, Louisiana, as a follow-up to the successful exploration well drilled in Upper Wilcox sands last year.
“We have an active drilling and development programme coming up this year,” said Aminex chairman Brian Hall. – (Additional reporting, Reuters)
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