Aminex AGM With Updates On Shoats Creek, Ruvuma Basin And Nyuni Licences

10th Jun '10 by Edward Croft

10 comments 10461 reads

Yesterday, for the first time in the company’s history, Aminex (LON:AEX) hosted its annual general meeting of shareholders in London. The Dublin and London listed oil and gas exploration and production company is popular amongst private investors, and the event was well attended in the pleasant surrounding of the Covent Garden Hotel on Monmouth Street. The company has a mixed portfolio of production and exploration assets including production in the USA, higher impact onshore exploration and offshore gas discoveries in Tanzania and some other interests including Egypt and North Korea.

The board were all in attendance and after all the formal resolutions were passed Brian Hall, Executive Chairman, and Michael Rego, Group Exploration Director, followed up with an in depth presentation and Q&A session of the company’s current operations. The presentation is available at the company website.

Likonde-1, Potential in Ruvuma, Tanzania
Aminex’s main higher impact exploration is focused on their onshore Tanzanian assets. “Suddenly after the eight years Aminex has been in Tanzania, there’s a lot of activity in the East African Coastal Margin” remarked Brian Hall. It’s an area that’s been growing in interest with the majors, which has accelerated after Anadarko (NYSE:APC) and Cove Energy’s Windjammer deep water discoveries in the Mozambique sector of the Ruvuma Basin since when British Gas (LON:BG), Exxon-Mobil (NYSE:XON) and Petrobras (NYSE:PZE) have all made plays to join ventures that intend to drill in the area.

Aminex’s licence, currently held 50:50 with the operator Tullow Oil Plc (LON:TLW) (although Solo Oil (LON:SOLO) intend to join) , essentially gives them exploration rights for the whole of the onshore Tanzanian side of the Ruvuma Basin. FTSE 100 listed Tullow Oil, fresh from huge success across the border in Uganda, as operator of the blocks, drilled the first well in Q1 2010 at Likonde-1 which did not prove commercial but nevertheless provided a range of useful data, in particular the confirmation of oil onshore in Tanzania. Michael Rego, the group exploration director remarked that “Likonde-1 is the first well in the area to indicate oil and opens up the possibility of a new oil region”.

The East African Margin had been previously limited to commercial gas discoveries predominantly offshore, but according to the company the Ruvuma onshore is regarded as a separate sub-basin. …

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Murakami

11th Jun '10

Cross-referencing to the AGM discussion thread - http://www.stockopedia.com/content/aminex-agm-9-june-2010/42393

Surandy

"Brian Hall was questioned on the rumour that Key Petroleum had put their West Songo Songo licence up for sale and he revoked it as an ‘internet rumour’. He then stated that putting their interests up for sale without notifying their partner would be very unusual and that Aminex have an operational committee meeting with Key today at which they are planning to seek clarification."

Rumour eh? Brian should try chatting with his JV partners from time to time.

http://www.keypetroleum.com.au/reports/QuarterlyReportforquarterended31March2010(ID874).pdf

Tanzanian Planned Divestment

During the previous quarter Key received an approach from the UAE based, Ras Al Khaimah Gas Commission (“RAK Gas”,) a participant in the Nyuni block joint venture, to acquire Key?s interests in both the Nyuni and West Songo Songo PSCs. Following much discussion between the parties, a sale price was agreed. RAK Gas however, has now disputed the basis of the agreement reached with Key and this has thwarted the exchange of formal sale contracts.

In light of RAK Gas repudiating the proposed sale and purchase of the Interests, Key has decided to embark upon a programme to implement a sale of the Interests in the near future, conditional upon a reasonable price being attained. The Company has engaged external consultants experienced in these matters to assist it with this effort. This divestment decision has not been taken lightly but it has been influenced by a number of factors, predominantly a strategic change in focus for the Company from Africa to Europe where its sees greater near-term potential upside for a company of its size and a frustratingly slow pace of commercialization of the Kiliwani North #1 gas discovery. Key?s positioning in the UK and its ongoing involvement in Italy where its offshore permits show considerable promise, provides it with the opportunity to become involved in a number of projects that have potential to provide near term growth for the Company.

dbfromgb

Thanks Surandy for digging that out - I was pretty sure that it was fact rather than rumour. So the response was either evasive or borne of ignorance, and I am not sure which I prefer. Evasiveness perhaps on the basis that he did not want to get involved in a discussion where he might have been constarined as to what he could say?

marben100

12th Jun '10

Hi dbfromgb,

To be fair, I do not recollect Brian referring to it as "an internet rumour" nor "revoking it". My recollection is that Brian simply said that Aminex had not been informed or consulted before word of Key's intentions was made public. This may have been a misunderstanding by "Stockopedia features". Maybe someone else that was present can remember what was actually said?

Regards,

Mark

REO100

Hi dbfromgb

I attended the AGM and I believe this is a sensitive issue. I thought Brian Hall dealt with the query professionally on the basis that KEY have not had the courtesy to have contacted AEX directly, but they were aware of the situation via third party media. I think it is worth looking at KEY's own position (scan their accounts, do not forget they are the operator on West Songo Songo - I wonder if they have informed the Tanzanian authorities of their intentions) and perhaps what they said in their qtr report about RAK, is that really appropriate to make such comments about a current partner in your qtr report ?

IMO it is not an ideal situation but it comes down to whether you believe BH's comment that it was a '10' out of '10' for the pipeline to happen, I got the impression they were itching to say more and there has obviously been a major frustration for everyone over these two years and now KEY have thrown this situation in the equation.

Having digested the AGM comments I arrived concerned about the KEY situation, I left believing AEX were dealing with the situation as well as one can and perhaps it was for the best a weak partner moved on, lastly it is probably worth asking why would have RAK been so interested in picking up KEY's position and East Africa is hardly a bad place to be currently. I hope that may be of some help.

I should just say it was great to meet Marben and ee in person.

Regards

Reo

As others have asked elsewhere, I wonder if BH informed the other JV partners of their intentions to acquire 10% interest in Nyuni before it was made public.

Hi Surandy

I have no idea, but the point I was making was I would not expect/be happy for BH to use a qtr report to make such a statement about another company and to inform PIs that the Tanzanian assets were to be sold when from what I can see there had not been any earlier indication of such a strategic change by the company to shareholders before.

I believe you post on hotcopper as a KEY shareholder and I would share your frustration should KEY sell and the pipeline go ahead, from my point of view it seems simple in that respect AEX believe it will occur, KEY do not or do not wish to wait any longer. I am happy to hold AEX .

Edward Croft

Surandy, Marben and others - please note that we have edited the paragraph in question regarding Key. The original mention of a 'rumour' was our interpretation of his statement that he had 'read about it on the internet', and not a quote and may have been a misunderstanding on our part. Apologies for any confusion caused.

13th Jun '10

Hi Reo, yes I am the KEY shareholder that posts on Hotcopper as Surandy70 and am frustrated by the lack of progress and the lack of news of the progress. Fingers crossed we will see an announcement by June 23rd at the latest about the approval for the plant expansion.

June 23rd is the date that Orca, operator of the Songo Songo gas field, are due to hold their AGM.

flyingswan

31st Jan '11

Some New Wells added in Parish 06:
OLYMPIA 5
http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo2?p_wsn=242654
FISHER-LINDSEY 9
http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo2?p_wsn=242664
Fisher-Lindsey 8 is in field 8222 and Parish 06 which is the same as Olympia Minerals 10:
http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo2?p_wsn=241566
£AEX

Aminex AGM with updates on Shoats Creek, Ruvuma Basin and Nyuni licences

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Edward Croft

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