Aminex Provides Update on its Oil & Gas Reserves and Resources in US and Tanzania

Aminex PLC (‘Aminex’ or the ‘Company’) provides the following announcement regarding its reserves in the USA and volumetric calculations in connection with its ‘Nyuni’ project, offshore Tanzania.

• USA. Proved reserves (1P) of 2.5 million barrels oil equivalent net to Aminex, valued at $49 million.
• Tanzania. Nyuni PSA – 278 billion feet gas in place on a contingent resources basis and 2.54 trillion feet gas in place on a prospective resources basis.

1. TANZANIA RESOURCES

In Tanzania, an independent assessment of the potential of the Nyuni Production Sharing Agreement (‘PSA’), held through the Company’s wholly-owned subsidiary Ndovu Resources Ltd. (‘Ndovu’), has been carried out by Isis Petroleum Consultants. This shows the gas potential from two wells already drilled by the Company to be 278 billion cubic feet gas in place (equivalent to 46 million barrels of oil) on a P.mean basis, from the combination of two separate accumulations. These are categorised as ‘contingent resources’ and not as ‘reserves’, as only one well has been drilled on each accumulation so far.

Independently assessed ‘prospective resources’ at Nyuni, that is hydrocarbons independently mapped from seismic but not yet drilled, amounted to 2.548 trillion cubic feet gas (‘tcf’) in place (equivalent to 425 million barrels of oil) from three separate prospect areas on the licence.

‘Pmean’ refers to the average probability of the existence of the volumes reported. Ndovu currently holds a 50% interest in the Nyuni PSA, which will be increased to 65% pursuant to a farm-in agreement which will take effect once Nyuni-2, an exploration well designed to test a large prospect underlying Nyuni Island in the north east part of the concession, has been drilled. Nyuni-2 is currently expected to be spudded in April. The Nyuni PSA consortium holds the rights to the Nyuni area under production sharing terms with the Tanzanian petroleum Development Corporation.

2. US RESERVES

The results of an audit of the Company’s oil and gas reserves in the USA, held through a wholly-owned subsidiary, Aminex USA, Inc. and effective 1st. January 2011, are as follows:

Proved producing and undeveloped reserves net to Aminex’s interest, categorised as ‘1P’ and after adjusting for the interests of royalty owners, amounted to 2,544,400 barrels of oil equivalent (‘boe’).

These have been independently valued at US$49,428,000, using a 10% discount factor ($74,990,700 undiscounted).

Proved and Probable reserves net to Aminex’s interest, categorised as ‘2P’ and after adjusting for the interests of royalty owners, amounted to 4,781,800 barrels of oil equivalent (‘boe’). These have been independently valued at US$70,027,200, using unescalated oil and gas prices and a 10% discount factor ($125,132,000 undiscounted).

The Somerset Field and certain other small producing interests have not been included in the reserves audit because their net present values were not considered material. The reserves audits have been conducted by Sojen Petroleum Consulting and Oilfield Production Consultants.

Aminex chairman Brian Hall commented: ‘We are pleased to be able to report  proved reserves (1P) valued at $49 million in the US, mainly as a consequence of our 2010 drilling programme at Shoats Creek which will continue this year with two firm wells planned. The reserves have been partly offset by abandonment of the Sunny Ernst-1 well in Texas, drilled by the Company in 2000. This valuation is equivalent to approximately 6.75p per share based on the number of shares in issue prior to a placing and open offer currently in progress. On the same basis, the valuation of proved plus probable reserves (2P) is equivalent to 9.6p per share. The US largely underpins the current market capitalisation of the Company but the independently evaluated volumetrics of the Nyuni PSA alone demonstrate the upside potential for the Company of its licences on the East African coastal margin, which is currently enjoying a surge in exploration activity.’

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Source:Aminex, February  17, 2011;