Epic : AEX

Aminex PLC is an established upstream oil and gas company, listed on the London and Irish Stock Exchanges, which has operated internationally since 1991.

Aminex produces oil and gas in the USA and has ongoing exploration activity in Tanzania, North Korea. Madagascar, Kenya and Egypt. Aminex also owns AMOSSCO Ltd, an international oilfield service, supply and logistics company.


Main Web Site : http://www.aminex-plc.com

Amossoco Web Site : http://www.amossco.com/

Dec 2007 Company Presentation : Link to PDF File



Sept 07 - Operations Detail & Update : In post 2

28th Sept 07 - Oil Barrel Write Up : In post 6

North Korea Info : In post 3

Planned Drilling :

Commencing late Oct 07 (or early Nov) - Kiliwani-1 - Tanzania
to be followed by second Tanzania well.

Commencing Nov 07 - West esh el Mellahah Block 2 - Egypt



* Note : AEX is fully listed (not AIM) and so can be ISA'd


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http://www.oilbarrel.com/news/article.html?body=1&key=oilbarrel_en:1190944807&feed=oilbarrel_en&searchterm=aminex

28.09.2007

After Months Of Preparation, Farm-Outs And Frustrating Delays, Aminex Prepares To Excite Investors With Flurry Of Drilling News

There was not much to provoke excitement in Aminexs interim results announcement: that comes later. The first half numbers were pretty much flat year-on-year, with revenues up 14 per cent on the prior year period at US$2.9 million and the net loss edging a little deeper to US$1.6 million. The main activities over the six month period involved fundraising, with a rights issue and institutional placing raising US$29 million, the conclusion of farm-out agreements in Tanzania and some seismic activity in Tanzania and Madagascar. Not much there to get investors hot under the collar.

That looks set to change next month, when the Kiliwani-1 exploration well is due to sink in Tanzania. This will be followed by a second well, Kiliwani North, while November will see the drilling of the first of three wells on the West esh el Mellahah concession in Egypt. Chairman Brian Hall said the coming months will be of great significance in the company's development.

The second half of the year has already yielded some good news for investors, with the South Weslaco GU-37 gas well in Texas now on production from a deep zone. Compared to wildcatting in the exploration frontiers of East Africa, this is pretty staid stuff but increased production and reserves from these onshore properties will certainly help Aminexs case when it comes to raising additional funds for its exploration campaigns in Africa and the Far East.

The South Weslaco GU-37 is the third well drilled by Aminex and its partners on the field and it was drilled deeper than its predecessors. Although drilled some time ago, the well has only now been completed for production as the joint venture struggled to bring the deeper, and potentially more prolific zone into production. The partners took a risk with a powerful fracture of the deep formation, which has paid off with the well flowing over 2.5 million cubic feet per day on test and now in production through a temporary restricted choke at a rate of 1 million cf/d. This is good news for Aminex, which has a 25 per cent interest in the field, as it bulks up the cash flows, opens up the potential of the deeper zones on the field and should lead to a reserves upgrade.

But the big excitement in the Aminex portfolio lies in Tanzania, where the long-awaited follow-up to the companys Nyuni-1 exploration well of 2003/4 itself the first well in Tanzania for over a decade - is set to sink next month. The well will be drilled from the small island of Kiliwani, about 1 km south of Songo-Songo island (home of the producing Songo Songo gas field). Kiliwani-1 will be followed by a well on the Kiliwani North prospect (although this may change pending rig performance). Aminex has a 39 per cent interest in the project.

November will see the first of three planned wells on the West esh el Mellahah (WEEM) Block 2 permit in the onshore Gulf of Suez region. There are a number of prospects here, some of which adjoin Lukoil's producing oilfields in WEEM Block 1. In the event of a successful oil strike, this could add up to a very nice development project, particularly as Aminexs costs are fully carried through to first production.

Looking further ahead, 2008 will see drilling on the companys Alta Loma property in the US, with a deep gas exploration well scheduled for early in the year. And in southern Tanzania, the company holds the Lindi and Mtwara, collectively known as the Ruvuma PSA and covering 12,000 sq km of the onshore and offshore areas near the border with Mozambique, where 400 km of new onshore seismic is now being acquired. This will help determine the locations for two wells planned for 2008/9, designed to test several sizeable oil and gas prospects. Aminex has a 50 per cent interest in the Ruvuma PSA, along with East African hotshot Tullow Oil.

In Madagascar, the company holds the 10,750 sq km Manja PSA, where 500 km of new seismic is being shot. This will be used to determine whether to extend the licence into the next exploration period a decision is due by year-end. This is considered prospective acreage but it is remote and environmentally sensitive place to work Aminex is well used to these kinds of issues from its years of work in Tanzania but is also aware that such issues can also create long, and usually costly, lead-times before drilling work can get underway.

And over the long-term, there is North Korea, where the company has a 20-year exploration agreement covering the bulk of the on and offshore sedimentary basins. This gives Aminex real first-mover advantage in a massive yet little-drilled area of the world but investors should ascribe it little value until such time as the political situation improves.

For the coming months, the focus is going to be firmly on Tanzania, with some attention going to Egypt, as the drillbit provides the white-knuckle thrills that attract investors to Aminex."

I made a nice sum on the last ride up to near 50p, perhaps it's time to be getting back in especially with potential NK developments.

The big one coming up is the Tanzania drill and also Egypt, all in the coming couple of months, although NK and positive sentiment there will not do any harm.

And just in case anyone is questioning, then AEX is fully listed, and so can be put into an ISA. (Its not an AIM stock, its got a full listing)

For the record this was the Shares Mag comment from late August :

Aminex (AEX:AIM) 19.75p

Market Cap: 47.8 million

3-month relative strength: -4.6%, 1-year relative strength: -32.8%

The firms position is supported by its production in the US and it has and the exclusive rights to drill in North Korea. However, of potentially more interest are its plays in East Africa. The management has good experience in the region and the assets are not insignificant. With the area around Tanzania becoming increasingly attractive to the majors, if Aminex is successful with its current drilling programme there is potential for a farm-in with a much larger operator. Edison Investment Research believe that Aminex is already operating at a discount to its NAV, even if its exploration upside is ignored.

The current share price is certainly covered by the US assets. The drilling programme in Africa is of huge potential for the relatively near future. On top of this the apparent thaw in relations between North Korea and the rest of the world could add further huge potential to the share price.

The current share price appears to have Africa and North Korea in for nothing.

And this was the May 2007 Edison comment (when the SP was 23.8p) :


Investment summary: Eastern promise

On 15 May, Aminex announced an intended placing and rights issue to raise a total of 16.8m gross. The fundraising is subject to an EGM in June. On the same day. the company also reported that it had signed a 25% farm out of its Nyuni licence (Offshore Tanzania) to UAE-based Rakgas. We feel that the high level of exploration activity in Tanzania, reduced cost exposure associated with the farm-down, and the near-term commitment to drill makes for an exciting investment opportunity.

Big potential attracts the Majors

Of the 100 new licences granted in Sub-Saharan Africa in 2006, eight were in Tanzania. The only countries that saw a larger uptake of new acreage were the established producing areas of Nigeria (16) and Angola (10). The presence of companies such as Statoil, Shell, Total and Petrobras adds further weight to the view that East Africa and Tanzania, in particular, are seen as having significant exploration potential. If Aminex's current drilling programme proves successful it may provide an opportunity for attractive farm in deals with significantly larger operators.

An opportune proposition

An area seen by the Majors as having high impact potential, a farm-down to reduce the cost exposure of drilling and a commitment to explore in the near term all bode well when analysing the potential for upside in any oil and gas project. With an attractive opportunity identified and a clear plan for "proving up" reserves, the fundraising provides investors with a good balance between exploration risk and an opportunity to quickly achieve high returns on the back of a successful 2007 drilling campaign.

Valuation: Discount to market cap

Our current valuation based on Aminex's US production suggests a NAV of 47.4m, representing a c.7p premium on the current market cap. As per Edison policy, we have placed no value on the exploration assets, but do suggest that opportunities with the potential to make significant immediate returns on E&P projects are at a premium.

Latest operations update and detail in post 2 now.

Moving up nicely this morning.

L2 all blue and 1 v 1 @22.25/22.5

North Korea oil exploration still an idea - Seoul
Mon Oct 8, 2007 8:34am BST
By Yoo Choonsik

It said an Irish company obtained the right to produce and distribute oil in North Korea in 2005, including sea territories, but has not released any achievement since. It named the company as Aminex but did not provide further information on the company.

Aminex's Web site shows it is an upstream oil and gas firm listed on the London and Irish stock exchanges, which has operated internationally since 1991, and has produced oil and gas in the United States, with ongoing exploration works in Tanzania, North Korea, Madagascar Egypt and Kenya

http://uk.reuters.com/article/oilRpt/idUKSEO15687320071008

Nice to see that mention NabCom, will make Aminex known to a wider audience.

Nice rise (so far) today.

With the drilling programme in Africa scheduled over the next few months this could be quite a lively minnow !!!

Well, Tanzania drill one might happen late this month (or early next) and Egypt planned for November start, certainly is going to be lively.

Still looking lively. Underlying production and other assets should see this at around 30p levels..........and from there the drilling can give significant upside.

Whilst it remains below 30p, it remains undervalued presently, pending potential upside from three coming drills.

On the move again.

250K MM buy in there just now.

Another decent day, and another step towards 30p, which is fair value if you take exploration potential as nothing.............in other words 30p is still cheap imv.

A good site for getting information on Tanzania oil and gas.

http://www.tpdc-tz.com/exploration.htm



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Added the North Korea presentation to post 3 information on NK.

http://www.aminex-plc.com/Resources/c_DPRK_Summary.pdf



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