What are they going to do with the money? What happens next?

3rd Jul '09 by AnonymousUser858

3 comments 2281 reads

Recent discussion of Aminex started out by addressing the issues and questions arising from the on-going fund raising. Some participants seem to have become overwhelmed by feelings of grief and disillusionment at the weakness of the share price. The emotional exchanges which ensued have drained the energy from discussion of Aminex’s future and diverted discussion from the all important questions-

What are they going to do with the funds they are raising? What is going to happen next?

I’m offering this thread as a place to discuss these questions in an objective and non-emotional manner. This is not the place to come for a box of tissues, a shoulder to cry on and some emotional support. If you need those things, you’ll do better to go elsewhere. This thread is for people with stiff upper lips and dry eyes.

The best window into Aminex’s future plans is probably the presentation given at the AGM on 10^th June which can be found at

www.aminex-plc.com/files/090610_AGM_Presentation_June_2009.pdf

In view of other discussions it might be worth starting with the contents of slide 3

RECENT HISTORY

Aminex has participated in 6 new wells over the last two years, of which 3 were commercial discoveries.

•Kiliwani North-1 (NyuniPSA, Tanzania, 40% interest, operated by Aminex) tested gas at 40 mmscfd gas (6,700 bbls oil equivalent).

•Sunny Ernst-2 (Galveston County, Texas, 37.5% interest, operated by El Paso Corporation) tested 6 mmscfd gas and 300 bbls oil/day (1,300 bbls oil equivalent).

•SWGU-39 (South Weslaco, Texas, 25% interest, operated by Kaler Inc.) drilled & logged but not yet completed for production.

Then slide 4 cuts straight to the chase

SIGNIFICANT NEW WELL IN THE RUVUMA BASIN, TANZANIA

Aminex will spud Mikindani- 1 ,its first well in the Tanzanian sector of the prospective Ruvuma Basin, in Q3 2009. Aminex is in 50-50 partnership withTullow Oil.

APPRAISING & DEVELOPING THE KILIWANI NORTH-1 DISCOVERY, TANZANIA

Appraisal seismic will commence in June 2009 to define the extent of the KN-1 discovery. Commercialisation negotiations are in progress. Other exploration prospects under evaluation on the same licence.

DEVELOPMENT DRILLING FOR DEEP GAS AT ALTA LOMA, TEXAS

The Sunny Ernst-2 well at Alta Loma, Galveston County, Texas encountered five separate gas-bearing sands and is now on stream from one zone.The largest zone encountered, 60 feet net pay in the “S” Sand,…

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djpreston

3rd Jul '09

Morning T (well, almost afternoon)

Page 20 is essentially it as far as forward plan is concerned. I'll see if I can work out how to copy the table over myself (aka ask one of the back office girls who understands these things much better than me).

Edit - nope.

Anyway, the key events are, as far as Im concerned, completing farm outs on both SC and Ruvuma.

SC doesnt have any time pressure whereas Ruvuma did, prior to the funding.

Presuming that the farm outs are completed then I woudl not be at all surpreised to see us bulk up the production side or near production assets in the Us as flagged up in the recent statements. There are a lot of assets out in the US at the moment that look attractive due to financial market pressures and taxation changes. Any sale of S Weslaco would produce funds that Id imagine will be recycled into the US operations.

Looking at the work programme we can again see a very active campaign that has scope to add huge shareholder value. Probably a more exciting forward programme than many other companies at the moment, especially for a company of this size. All IMO of course and DYOR etc etc etc.

marben100

Deleted, now that image is in header.

As ever, the bottom line is that Aminex's plans will have to be flexible. Killiwane seismic is underway now (mentioned in the circular). Ruvuma has to happen when Tullow say so. I guess the rest will depend on Aminex's ability to complete farm-downs and the deals they can negotiate on those. If they can't get a good deal on Ruvuma, then that'll constrain spending on other things.

Cheers,

Mark

PS, RG, If you want to include the above image in the thread header, you can use the URL below to link to the image:

http://lh5.ggpht.com/_UiOfMFvs_mY/Sk4ey9ebyxI/AAAAAAAAAUM/TUl-TEMptbY/s912/AminexPlan.jpg

What are they going to do with the money? What happens next?

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AnonymousUser858

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